Insurance Broking FAQ’s

FAQs

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Who is an Insurance Broker?

An insurance broker is a licensed professional and independent advisor knowledgeable in risk management and insurance services.

Who do insurance brokers work for?

An Insurance broker is an intermediary who typically works with multiple insurance companies offering a variety of products and services to a customer (individuals/businesses)

 

They research the market for suitable options, share those options with their clients, and help them apply for and purchase coverage from insurance companies.

Why should I use an insurance broker?

There are many reasons why using an insurance broker is the best way to protect you or your business, here are some of the reasons.

 

  1. Cost- Brokers research the market for suitable options ensuring that the client not only gets value for money but also gets the right cover, benefits, and limits.
  2. Expertise – Insurance policies can be complex and there are often many differences in coverage between policies from different insurers. An insurance broker simplifies the jargon used in Insurance policies, and advises and recommends the most ideal package for your circumstances.
  3. Ease – Identifying the right cover, negotiating the best terms and most competitive premium as well as filing a claim is not an easy task. We ensure that the entire insurance process is a simple and hassle-free experience for our clients.
  4. Speed – An insurance broker understands the claims process and will provide guidance and assistance in expediting the claims process.
  5. Peace of Mind– We are there to offer advice, guidance, and advocate for you at all times to ensure that you can focus on your core activities.
What insurance cover does my business need?
Every business faces different risks and exposures, which is why we tailor Insurance specific to your business. We handle all areas of commercial insurance for our clients whose risk exposures are broad and multifaceted. Our clients hail from different sectors of the economy including financial services, SME, NGO manufacturing, construction, technology, pharmaceuticals, storage, hospitality, transport & logistics, etc.
What type of personal insurances insurance might I need?
Just like a business, you are likely to have assets, whether it is a Car, or your Home, not forgetting yourself. We offer Medical Insurance, Life Insurance, Pension, Travel insurance among other policies depending on your specific needs.
Who decides the Insurance premium rates?

Insurance Premium rates are based on the type of risk, however, there are tariffs in the market that guide on premium rating for several Insurance classes. In Kenya, premium rates are governed by;

  1. Reinsurers- Insurers have to comply with rating structures required by their Reinsurers to avoid invalidating their Reinsurance contracts.
  2. The Association of Kenya Insurers also advises premium rates and tariffs for certain classes of business.
  3. The office of the Insurance Regulatory Authority also guides on rates /tariffs of some classes of business.
How much will the insurances cost me?
Almost every risk is different, and we will tailor the insurances required to suit you. We listen, evaluate your needs, and recommend/ advise our clients on the best solution. Depending on the type of risk and the sum insured, we will source and compare terms from various providers and recommend the best package for you.
How do I pay my Insurance premium?

Insurance Amendment Act No.11 2019 states that all insurance premiums relating to any insurance policy will be paid directly to the insurance company issuing such policy. However, where the insurance premium is payable by cheque, the cheque should be written in the name of the insurance company and such cheque can be delivered to us as your broker to dispatch to the Insurer.

Can I pay the Insurance premium in Installments?
The Insurance Act requires premiums to be paid upfront (Cash & Carry). However, at M.A. Khan Insurance Brokers, we can arrange for you to pay the premium in Installments through Insurance Premium Finance (IPF) from various financial institutions.
What happens to my policy if I fail to pay the premium?
Failure to pay Insurance premiums as stipulated in the policy amounts to a breach of policy terms and conditions and leads to the termination of the contract. This also means that you cannot make a claim.
What is an Excess/Deductible?
An excess is an amount the policy holder must pay if they proceed with making an insurance claim. This is usually indicated in your policy document as a fixed amount or as a percentage of the limit, sum insured or the loss.
Are there cases where the Excess is not payable?

Yes, this is mostly applicable to Motor Insurance Policies.

  1. If you have purchased an Excess Protector Benefit, you will not be required to pay the excess amount as long as the loss/damage is above the Excess limit.
  2. If your policy has a No blame no Excess benefit, you will not be required to pay any excess if you are not to blame for the accident. This is subject to provision of a police abstract noting the same.