Farm Machinery Insurance

Farm machinery forms the core of a farm enterprise. Farm machinery is expensive and therefore costly to replace and, or repair in the event of breakdown, accident or theft.  

The three key farm vehicles are:

•    Tractors
•    Caterpillars
•    Combine Harvesters

Implements mounted on tractors include:

•    Ploughs
•    Planters
•    Culitivators
•    Sprayers
•    Mowers

In Kenya, farm machinery is insured under motor vehicle insurance, in what is referred to as special types. Since the farm machinery is largely out of public roads, the risk of road accidents are reduced and therefore its cheaper to insure farm machinery than it is to insure a car.

Motor insurance is compulsory insurance according to the laws of Kenya.

1.  Third Party Only. This is the minimum mandatory insurance which covers liability to third parties only for bodily injury and property.
2.  Third Party Fire and Theft  extends the cover to the insured vehicle against damage or theft.
3.  Comprehensive Insurance covers a wider scope:
•    Death and bodily injury and or damage to property liability to third parties
•    Loss or damage to vehicle, arising out of accidental collision, overturning, fire, explosion, lightning, theft and malicious damage.

Important exclusions under this policy include:

•    Loss falling within the policy excess
•    Political Risks-can be bought back at an extra cost
•    Terrorism- Can be bought back at an extra cost
•    Use of vehicle by unauthorized person or a person without a valid driving license.
•    Use of vehicle for carriage of passengers for hire and reward
Implements are covered against loss arising out of fire, theft and many other risks under the All Risk Cover.