-
Home Insurance
- Can I own a home without domestic package insurance?
- Can I purchase domestic package insurance if I'm renting a house?
- How are claims paid under various Sections?
- How do I file a claim under domestic package insurance?
- How often should I review my policy?
- What information do I need to provide to my agent,broker or insurer when proposing or renewing cover?
- What is a standard domestic package insurance cover?
- What is domestic package insurance?
- What kind of domestic package cover is adequate?
- What should I do if I am leaving the house unoccupied for sometime?
- What type of insurance do I need for a house purchased through a mortgage?
- Which are the common types of misfortunes covered in a domestic package insurance?
- Why is it important to take a home inventory?
-
Motor Insurance
- How do I file a motor insurance claim?
- How is the premium of motor insurance determined?
- Is motor insurance compulsory in Kenya?
- What are my rights when filing a claim?
- What are the different types of motor claims?
- What are the different types of motor insurance certificates in Kenya?
- What are the different types of motor insurance policies?
- What are the duties of insured person in the event of an accident?
- What are the duties of the insurance company in the event of a claim?
- What are the main documents required in settling a claim?
- What information is required when proposing for<br>insurance?
- What is motor Insurance?
- What should I do if I am involved in an accident?
- What should I do if I have a problem with claim<br>settlement?
- What steps are taken by an insurance company before a motor insurance claim is settled?
-
Medical Insurance
- Am I insured while out of the country?
- Do I need to continue paying my monthly contribution to NHIF if I have medical insurance policy?
- Does medical insurance cover all hospital bills?
- Does my policy cover conditions existing before I took up the insurance?
- Does the policy cover all my children?
- Does the policy cover the insured in old age?
- How are medical bills paid?
- How do I apply for medical insurance?
- How do I benefit from NHIF membership?
- How will the hospital know that I am the insured?
- What happens in case of an emergency?
- What is medical insurance?
- Who does an in-patient policy cover?
- Who does an out-patient policy cover?
- Will the policy compensate me for all kinds of treatment that I receive?
-
Agriculture Insurance
- Agriculture insurance underwriting and claims
- Challenges of crop insurance
- Index Based Livestock Insurance
- Index based weather insurance
- Introduction to agriculture insurance
- Livestock Insurance
- Other types of agriculture insurance
- Perils that affect the agriculture sector
- Poultry Insurance
- The International Agricultural Insurance Market
- Types of Crop Insurance
- What is Agriculture insurance?
-
Aviation Insurance
- Aircraft Hull and Liability Cover
- Aviation Hull War and Allied Perils Cover
- Aviation Insurance Underwriting and Rating
- Introduction to Aviation insurance
- Laws Relating to International Trade or Carriage of Passengers by Air
- Loss Adjusting and Surveying Aviation Insurance
- The Aviation Insurance Market
-
Business Interruption Insurance
-
Common Factors in Property Insurance
-
Emerging Issues and trends in general insurance
-
Engineering Insurance
-
Fire and Perils Insurance
-
Liability Insurance
- Classes of liability insurance
- Directors’ and Officer’s Liability Insurance
- Employers Liability Insurance
- Introduction to liability insurance
- Legal Expense Liability Insurance
- Products LIability Insurance
- Professional Indemnity Insurance
- Public Liability Insurance
- Trustees’ Liability Insurance
- Work Injury Benefit Act (WIBA)
-
Marine Insurance
- Arranging for marine insurance
- Effecting Marine Insurance market
- International Contracts of Sale(INCOTERMS)
- Introduction to Marine Insurance
- Marine Insurance and Trade
- Marine Insurance Claims
- Marine Insurance Policies
- Marine Insurance Underwriting and Rating
- Marine Perils
- Principles of Marine Insurance
- The marine Insurance Markets
Average Conditions in property insurance
The application of average is a method by which insurers seek to defeat under – insurance and its negative effects of the insurer, when an insurance is subject to average the amount payable by insurers is restricted to that proportion of the loss that the sum insured bears to the value of property at the time of loss or damage. The insured is thus made a co-insurer if the property at the time of loss is not covered for its full value. in order to ascertain the insurers liability in the event of a claim under a policy subject to average, the loss is assessed in the ordinary manner but the amount payable is determined after a comparison of the sum insured insured and the value of the property.
The application and operation of average is fair both to the insurers and to the members of the insuring public as insurance rates are calculated on the assumption that the property is fully covered.
NB average restricts the insurers liability for all loses where under- insurance exists by proving an equitable penalty- and is simpler than adjusting the rates.
There are four conditions of average namely:
- The pro rata condition of average
- The 85% condition of average
- The special condition average
- The two condition average
The Pro Rata Condition Average
This is the condition most frequently used and may be worded as follows:
“whenever a sum insured is declared to be subject to average, if such sum at the commencement of any damage is less than the value of the property covered within such sum insured, the amount payable by the insurer regarding such damage shall be proportionately reduced”
The operation of this condition can be demonstrated as follows:
Sum insured…………………………. KES 6,000,000
Loss………………………………………. KES 4,000,000
Value of property at time of loss of the fire………. KES 8,000,000
Insurers liability is
Sum insured x Loss
Value
= KES 6,000,000 × KES 4,000,000
KES 8,00,000
=KES 3,000,000
The insurer shall pay KES 3,000,000 even if the loss incurred was KES 4,000,000. The insured will bear the balance of KES 1,000,000 of the loss because they had under insured. It is of course possible for the fill sum insured of KES six million to be paid (the insurer can never pay more the the sum insured in the event of total loss, but this will leave the insured as co- in
Surer of the remaining KES 2,000,000.
The pro rata condition of average is generally applied in every in every contract of insurance on property against fire and special perils. With the following exceptions.
- Building occupied solely for private residential purposes, including household goods and personal effects, or a building privately owned and insured in the name of the owner but occupied for trade purposes.
- A building and its contents use wholly or mainly for public religious worship
- Any item relating to agricultural produce. The sum insured by a such item will be subject to the special condition of average.
- Insurances subject to two conditions average
- Water damage insurances issued specifically on the first loss basis
- Insurance on building whilst in course of erection.