Many vehicle owners believe insurance will fully protect them after an accident — until a court award exceeds their policy limit.
In March 2026, a tragic accident along the Webuye–Kitale highway shocked the nation when a trailer truck reportedly lost control and rammed into a crowd of bystanders who had gathered at the scene of an earlier accident. Several people lost their lives and many others were injured.
Beyond the tragedy, the incident highlights a critical reality: a single road accident involving a commercial vehicle can generate multiple third-party claims, pushing compensation for injuries, loss of life, and legal costs into tens of millions of shillings.
This raises an important question for vehicle owners—especially transporters and fleet operators: Do you truly know the limits of your motor insurance cover, and whether those limits are adequate for the risks you face?
Across the insurance industry, court awards increasingly exceed policy liability limits. When this happens, the insured vehicle owner becomes responsible for the difference—often discovering this only after a judgment has already been delivered.
Motor insurance policies are designed to protect vehicle owners against liabilities arising from accidents involving injury, death, or damage to third-party property.
Typical liability limits often include:
| Cover Type | Typical Limit |
|---|---|
| Third Party Property Damage | KES 5,000,000 |
| Third Party Bodily Injury | Up to KES 3,000,000 per person (Maximum KES 20,000,000 per event) |
| Third Party Passenger Legal Liability | Up to KES 3,000,000 per person (Maximum KES 20,000,000 per event) |
While these limits may appear adequate when purchasing insurance, court awards today can easily exceed these amounts, particularly in cases involving serious injuries, fatalities, or commercial asset losses.
Motor accident claims generally fall into two main categories, each with different financial implications.
These arise where an accident results in bodily injury or loss of life.
Courts may award compensation for:
Medical expenses
Pain and suffering
Loss of income or earning capacity
Permanent disability
Dependency claims in fatal accident cases
Funeral expenses
Legal costs
Because these claims involve human life and long-term suffering, awards can be substantial. Where multiple victims are involved, compensation can quickly exceed the liability limits in a standard motor insurance policy.
These arise where an accident causes damage to property belonging to another party.
Examples include:
Damage to another motor vehicle
Damage to commercial trucks or fleet vehicles
Damage to buildings or infrastructure
Damage to business equipment
In many cases, property damage claims may also include loss of use or consequential loss, especially where the damaged asset generates business income.
For example, where a commercial vehicle cannot operate due to accident damage, courts may award compensation for lost business income during the period the vehicle was not operational.
In one recent case, loss of use alone was awarded at over KES 370,000 per month, significantly increasing the final compensation.
Recently, I was consulted by a vehicle owner who had just received a court judgment that left him shocked and financially exposed.
The case had started as what appeared to be a relatively straightforward claim. In 2024, a third party demanded KES 4 million for damage to a vehicle following an accident.
Normally, such damage could be verified through a qualified motor assessor, allowing the parties to establish the extent of loss and negotiate settlement where liability is clear.
However, the matter proceeded through litigation. During the legal process, the claimant also pursued loss of use compensation, arguing that the damaged commercial vehicle could not operate during the dispute.
By December 2025, the court issued its judgment. The final award stood at KES 11 million. The insurance policy covering the vehicle had a liability limit of KES 5 million, meaning the insured vehicle owner had to personally pay the remaining KES 6 million.
What began as a KES 4 million claim escalated to KES 11 million, largely due to prolonged litigation, loss of use compensation, and increasing legal costs.
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One of the most important factors in managing liability claims is early and competent assessment by the insurer’s claims and legal teams.
For property damage claims, qualified assessors can determine the extent of damage early and guide appropriate settlement discussions.
For injury or fatal accident claims, the claims and legal teams must review medical evidence, accident circumstances, and potential liability exposure as early as possible.
Where liability is clear and the claim is genuine, early negotiation and settlement may be the most practical and cost-effective approach.
Allowing claims to proceed through prolonged litigation can significantly increase costs due to:
Loss of use compensation
Accumulating legal fees
Court attendance costs
Interest on the claim amount
Without competent early analysis, a manageable claim can easily evolve into a costly legal dispute.
One practical way to reduce exposure is by increasing liability limits.
Many insurers allow clients to purchase additional liability cover at an extra premium, often calculated at approximately 0.1% of the additional limit requested, subject to the insurer’s underwriting limits.
| Additional Liability Limit | Approximate Additional Premium |
|---|---|
| KES 5,000,000 | KES 5,000 |
| KES 10,000,000 | KES 10,000 |
| KES 20,000,000 | KES 20,000 |
For transporters and commercial fleet operators, this relatively small additional cost can provide critical protection against large court awards.
The increasing number of motor accident awards exceeding insurance limits highlights the need for stronger claims management and better risk awareness.
Vehicle owners should remain actively engaged in claims affecting them and maintain proper communication with their insurers or insurance brokers.
At the same time, insurers must ensure that claims are handled with:
Competent claims analysis
Effective legal oversight
Early engagement with third-party claims
Clear communication with insured clients
Insurance protection should not end at issuing a policy — it must continue through competent and proactive claims management.
Without these elements, even a modest accident claim can escalate into a serious financial burden for the insured.
“The real risk in motor insurance is not the accident — it is the financial exposure that emerges when claims are not managed promptly, professionally, and backed by adequate liability protection.”
— Arbanus Kimenye
Arbanus Kimenye is the CEO of Surefront Insurance Brokers Ltd and an insurance risk advisor with extensive experience in underwriting, claims management, and liability risk advisory for transporters, businesses, and private vehicle owners.
