PSV is the short form for public service vehicle, therefore PSV insurance is a form of insurance that offers coverage for public service vehicles and individuals who frequently use these vehicles.
In Kenya, public service vehicles (PSVs) are a common mode of transportation for many people. These vehicles include buses, matatus, Uber cars, taxis and they are often used by commuters to travel to work, school, or other destinations.
PSV insurance provides financial protection to passengers and drivers of these vehicles in the event of an accident or injury while using them.
In Kenya, PSV insurance is a legal requirement for all public service vehicles. This means that all PSVs must have a valid insurance cover before legally operating on Kenyan roads. Failure to comply with this requirement can result in fines, penalties, and even vehicle impounding.
Before getting a PSV cover for your vehicle you need to first identify how many passengers it will be carrying (PLL) and what the vehicle will be used for.
Passenger Legal Liability (PLL)
As earlier said PSV insurance offers financial protection to passengers in the vehicle. Therefore, when taking up an insurance cover for your vehicle you need to specify how many passengers it’s supposed to carry.
This explains why police on Kenyan roads are always on a hunt for those matatus that have overloaded as the excess passengers will not be compensated in the event of an accident.
What’s more, it’s also an offense for a PSV vehicle to carry more passengers than licensed as stated in the Traffic Act of Kenya Cap 403 section 100(2) and one can be charged a fine or even imprisoned if found guilty of this offense as seen in this case where a school bus driver was charged for carrying excess passengers (Pupils).
It, therefore, goes without saying that the cost of PSV insurance will be heavily reliant on the number of passengers the vehicle carries, the higher that number is the more expensive and vice versa is true.
Vehicle Usage
The line of work in which the vehicle will be used in is also a major determinant as to what PSV cover one would get.
There are four major PSVs in Kenya today, these are:
- PSV Matatu
- Uber
- Tour Van
- Private hire
PSV Matatu
Matatus are the most popular PSVs in Kenya today with over 60% of the Kenyan population using them to commute every day.
Therefore, PSV matatu insurance is strictly for matatus only and the correct number of passengers should be indicated when getting the cover.
The insurance cover is available in two types that is comprehensive PSV matatu insurance cover and third-party PSV matatu insurance cover.
The comprehensive cover covers the vehicle, passengers and third-party damages while the third-party cover covers the passengers and third-party damages only.
Interestingly, you can get one or two weeks of insurance cover for PSV matatu something that’s not common with other classes of motor insurance.
It’s also important to note that only three companies in Kenya offer PSV matatu insurance these are Directline insurance, Amaco Insurance, and Xplico Insurance.
Uber
In 2015 Uber launched in Kenya, it was the first online taxi-hailing cab in the country.
Over the years there have been other companies that have come up and this necessitated a special class of insurance for these vehicles and therefore, PSV Uber was introduced.
This insurance cover is given to all online taxi-hailing cabs in Kenya its available in two types comprehensive and third-party.
Most online taxi-hailing cab companies usually recommend the vehicle owner source for comprehensive insurance coverage.
Tour Van
This insurance cover is given to those vehicles that are used to carry tourists, TSV (Tourist service vehicles), they’re mostly used in national parks and game reserves.
Private Hire
This insurance cover is given to those who hire out their vehicles. Usually, the vehicle owner gives the hirer the vehicle to drive and use on their own.
For anyone in this line of work here are a few tips you can implement to ensure your vehicle is always safe.
- Get a Comprehensive Insurance cover – This offers indemnity in case of any damages or loss when the vehicle is being used by your clients.
- Draft a contract with the hirer before releasing the vehicle to them.
- Install a reliable car tracking system – A car tracker will keep your mind at ease as you can see the real-time location of your vehicle as well as analyze how the vehicle is being used. Ensure you source one from a reputable car tracking company.
Conclusion
In conclusion, PSV insurance is a vital aspect of the public transportation sector in Kenya as it provides financial protection for both the vehicle owner and passengers against unforeseen risks and accidents.
As a PSV owner or operator, understanding the different types of PSV insurance policies available in Kenya, and their coverage limits is crucial in making an informed decision that suits your needs and budget.
It is also important to comply with the legal requirements and regulations set by the government to avoid hefty fines and penalties.
You can get in touch with an insurance expert here for a free consultation.
Kevin Muya is an award-winning entrepreneur and the visionary Founder and CEO of Scepture Empire Limited. With a passion for e-commerce and digital marketing, Kevin has revolutionized online marketplaces in Kenya through innovative ideas that transform buyer-seller interactions.
Well explained
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