When a fire reportedly destroyed more than 50 vehicles at a garage, many Kenyans understandably focused on one question: who will pay for the loss? That question matters.
But as the Association of Kenya Insurers, we believe the incident should also prompt a broader conversation about preparedness, responsibility and the role of insurance as a tool for resilience for both customers and garage businesses.
Insurance works best when the coverage is understood before disaster strikes. Yet too often, the policy is only examined after the unfortunate incident has occurred. At that point, individuals and businesses face losses that are difficult to absorb without the right protection in place.
For vehicle owners, the first lesson is to know what your motor policy covers. If a vehicle is left at a garage for repairs, servicing, inspection or storage, a comprehensive insurance policy covers the vehicle in the event of an accident. After the insured is compensated, the insurer may demand compensation from the garage. However, if the vehicle is insured on third party only basis, the vehicle owner can lodge his claim to the garage owner.
Before handing over a vehicle to a garage, customers may need to find out whether the garage is insured for customers’ vehicles. It is important to have a job card/vehicle intake sheet and keep written evidence of the agreed work. These simple steps strengthen accountability.
For garage owners, the lesson is even more urgent. A garage is not merely a place where vehicles are repaired; it is a business that receives, stores, moves and tests valuable property belonging to other people. Every day, garage owners assume responsibility for vehicles that may be exposed to the risk of fire, theft, accidental damage, collision, flood or other operational risks. Without adequate insurance, one incident can threaten the survival of the business.
This is why Motor Trader Insurance is a critical cover for motor trade businesses. It is designed for garages, workshops, vehicle dealers, resellers and other operators whose work involves handling vehicles that may not belong to them.
The cover has several components that help protect the business against risks arising from keeping, repairing, moving, testing or storing customers’ vehicles.
Motor Trade -Internal Risks cover is particularly important because it responds to loss or damage to customers’ vehicles while they are within the garage premises. Motor Trade -Road Risks cover is equally important. It applies where authorised garage staff need to test, move or drive a customer’s vehicle on the road.
Our appeal to garage owners is not to wait for disaster to wish you had insurance. For those already insured, do not wait for a claim to discover that your cover is inadequate.
Assess the value and volume of vehicles in your care, review your premises safety measures, disclose your operations honestly to your insurer, agent or broker, and ensure that the insurance you purchase matches the risks that you face.
The recent garage fire should therefore not be remembered only as a tragic event. It should be treated as a wake-up call for the entire motor ecosystem. Customers, garages, insurers, intermediaries and regulators must each play their part in building a culture where risks are anticipated, responsibilities are clear and protection is in place before losses occur.
As the Association of Kenya Insurers, we urge vehicle owners and garage owners alike to make insurance part of their planning, not an afterthought. Insurers have developed, and continue to develop, packaged solutions for motor traders depending on the nature and scale of their operations. The best time to understand and strengthen your cover is not after a loss has occurred; it is today.