Kenya Orient Insurance has launched an excess-free motor insurance package. The service, known as the Orient Motor Pack, does not charge any excess on material damage claims (material damage refers to all property-related damages covered by the policy). For Kenya Orient, this means that clients will have no extra charges when they are inolved in an accident.

Like many other insurance packages, there is a catch; The policy only applies to damages that cost more than KES 20,000. The insurer joins the ranks of others like Octagon and APA Insurance who both offer excess-free covers for material damage. Their covers also include a no excess policy for windscreens, entertainment systems and window-glass.

On the other hand, some motor insurers like UAP charge pay for up to KES 30,000 for specified material damages like windscreens and entertainment systems. UAP then pays 10% for the excess up to a maximum of KES 100,000 in damage expenses. The client pays the remaining 90% in excesses.

Other insurers like Gateway only pay up to KES 50,000 for the same kind of damages with customers paying for the remaining excess. Barclays Bank, in conjunction with Jubilee Insurance, has a motor cover which charges an excess of 10% for every claim the client makes.

Kenya Orient’s package also comes with countrywide rescue and road assistance services. It also offers refunds in case the client is forced to make an ATM withdrawal during a carjacking.

The product comes at a time when the motor insurance industry has just reported a rising demand for vehicles. According to the 2012 Kenya Insurance Report, vehicle sales were up 8.8% towards the end of 2011. What’s more, the Kenya Revenue Authority (KRA) registers at least 7000 cars every year with more than 205,000 recorded vehicles in 2011.

Kenya Orient believes that excess-free motor insurance is a windfall, especially to the commercial vehicle sector which accounts for 27% of the motor industry.