Browsing: Insuring motor vehicles

An insurance company can settle a claim in a number of ways namely repair your vehicle, compensate you in cash in case of total loss or give you cash to repair your car in case you insured on a comprehensive basis. The insurance company giving you cash to settle an accident repair job is called cash-in-lieu in insurance parlance. Section 203 of the Insurance Act Cap 487 tackles the issue of claims settlement.

Ideally insurance companies should be giving you cash to repair your vehicle and they should not be running garages or appointing garages to repair your vehicle. This is because their responsibility stops with them compensating you cash for your loss and itis your business to seek a repairer of your choice. This in turn removes them from all manner of problems like legal liabilities in case of poor repair of vehicles if they so authorized. It also …