I have always been conscious of the fact that it is possible to be fired anytime. Continue reading “Dont be afraid to start over again”
My boss was around over the last few days of last week. I was late for the morning training and I was never allowed in. He was furious for my lateness though he was more concerned about my production since I joined. If you have ever been late for a meeting and your boss asks for explanation in writing, you know what is expected. Apologies, because there will never be a reason for lateness. If you apologize that’s okay. Bosses want you to realize that you are late and there is no reason to be late. Continue reading “Motor Vehicle insurance in Kenya”
My boss was around over the last few days of last week. I was late for the morning training and I was never allowed in. He was furious for my lateness though he was more concerned about my production since I joined. If you have ever been late for a meeting and your boss asks for explanation in writing, you know what is expected. Apologies, because there will never be a reason for lateness. If you apologize that’s okay. Bosses want you to realize that you are late and there is no reason to be late.
The best way to start saving is to start saving immediately. Find a way to have a section of your income into your saving as early as now, because money will never be enough. As your income grows, expenses and responsibilities grow at even a faster rate. You want to move with the latest trends in the market, latest smartphone, and a laptop and in the end you procrastinate on your saving and this consequently hurts your future. Continue reading “The Best way to start saving, Kenyan Experience”
I wrote this piece while in a bus travelling. The possibility of typos here is inevitable. But the post is inspired by an honest conversation, actually a difficult conversation with someone who hated insurance. She wanted ne to explain everything about the cover which I was capable of doing but she was just difficult to please. Continue reading “What your insurance agent never told you about your cover”
Knowledge can be a great advantage in life. Having talked about why your insurance claim will never be paid, I thought it wise to explore why you need insurance. Forget about the government regulation. There is need that you at least have insurance to cover some of the risks that you face in life today.
There are high chances that expected events would happen in our lives. There are chances that unexpected would happen as well. There is need to do away with some of the worries that you may have in life and negotiate with someone on your behalf.
It is evident that people hate insurance in Kenya and they only take insurance for their cars because the government has forced them to. Second insurance penetration is very low in Kenya, not more than 5%. It means that 95% of Kenyans don’t have insurance in any related why.
Except for those employed, who have covers for them and their families, Kenyans will naturally avoid taking insurance. They view insurance as a cost.
Insurance is thought to be a deal for the wealthy families. The Kenyan population is increasingly becoming middle class.
Insurance secures your future, if not for you at least for those that you leave behind.
I know it’s not interesting to talk about death. I also can’t imagine dying someday. But the truth is we have families that look up to us for provision.
No one wants his or her family to suffer when they are no more. One of the ways to secure their future is saving. Having a saving plan is like taking a retirement plan when you are still employed or even when still in business.
The challenge you will face when you save is the temptation to use the money for an emergency. Insurance offers a disciplined way of saving by forcing you to have goals towards which you will gear your savings.
Having an account for your child or locking in savings is a way to ensure that when you are not there your family will have a better life and they will forever cherish you because you left them a legacy. They will be obliged to do the same.
Insurance ensures that you are spending well.
I am not saying you are a bad spender. At least for your personal finances, your will be able to have plans on what to do. By now you know that stagnant wages is not only a Kenyan problem. One thing is that we don’t insure certainties. It is inevitable that we will all die. We can not protect against death.
The insurance cover that you take only secures the future for your people. If you love them, have a plan for them. You are not sure that in the future you will not be there, so take a cover for the future.
The money will never be enough, don’t be cheated that you will take insurance when your salary is more.
I like to talk about myself. I left college in 2012 and together with my close friend we set off for this long journey to try and builder our future. I had some little saving from my endeavors in college.
I got my first contract job in the same year, and my salary was 20,000 shillings a month. It was little, but with it, I took a fifteen-year policy. My friend refused to take it because he said fifteen years is a long time. 20% of my gross earnings went to insurance, and I have never regretted.
I have been able to change jobs and never missed a single premium. No, I missed once, but that was a bank error. I changed accounts, and it took longer than I expected for the underwriter to effect the charge in the other account.
My friend problem was that his salary was too little to commit to insurance. It is now three years down the line, and he has never thought of taking a cover for his family. His salary is still not enough.
The money will never be enough. Those who have more want more and those who have less envy those who have more. I call it procrastination without course.
In my quest to sell insurance I encounter challenges explaining repudiation of claims. In fact, the word insurance in Kenya leaves a bad taste in the mouths of many. People just hate the word. The truth is the lack of knowledge has led many to have a bad experience with insurance.
Let me remind you a few things before I explain why the insurance firm wont be paying your claim. Insurance is trading of risks. An individual or a company usually referred to as insured, trades worries/uncertainties with the insurer in consideration for a fee known as a premium.
So the insured knows that there is a risk of eventuality then decides to pay someone to worry on their behalf. It is vital to note that as you take insurance know the risk that you are covering.
Many Kenyans just take insurance without considering the risks that they face. At the end of purchasing an insurance cover, you have the wrong cover for yourself. For example. You insure your car as a motor private when you know very well that you will use the vehicle as a taxi. In the event of an accident, don’t bother asking the insured for compensation.
Now this is why your insurer will never agree to pay you:
You probably insured against the wrong risk.
I said earlier that before taking up insurance cover, know the risks that you don’t want to worry about. If its the possibility of a fire burning down your house and the contents, it is important that you take a fire cover for your home and the contents. Being clear in what you want to cover against settles your mind to worry about other manageable risks.
For life related insurance covers, it is important to note the details of your cover. There are some insurance policies that only cover accidental deaths, in case of a natural death, you are not covered.
An example, walking a long the street then accidentally a car knocks you down. Unfortunately, you die. That is an accidental death. Some covers do not include sudden deaths. Like you went to bed fine then people wake up and you are gone. It is vital to know what your cover entails
You Under-insured your asset or yourself
Many Kenyans manipulates the value of their property to manage the premium amount. That is the worst mistake you can ever do to yourself. Under-insurance will make you hate insurance for the rest of your life. Get a professional to value your house, car or any other asset you want to insure the negotiate the benefits you are going to derive in your cover.
It is interesting to see how people choose sum assured for their life covers. Do you know that when you decide on a particular sum assured, that is what you are worth. Well, now you know. When taking an insurance policy consider what your value is, the take a cover that will compensate what you value is.
You took the right cover, but you negotiated the benefits out of the cover.
This is important, never negotiate the rate of the premium. Negotiate the benefits in your cover. What sales people don’t tell you when they are selling insurance is when they reduce the rate of premium, the benefits are chucked out of the cover.
Now when a benefit is removed, you will never enjoy it and in case of a claim, the insurer will tell you “we only pay this for client who took the cover at this particular rate” In the industry, insurance word is the worst word you will ever hear.
Political violence and terrorism benefit in a comprehensive cover for motor vehicle is usually charged at a particular rate. it is about 0.35% for commercial vehicles and 0.25% for private of the market value of the vehicle.
If you ask your insurance agent to reduce the premium rate, he or she will remove this benefit in the first instance which is risky. This means in case of a political violence and your vehicle is caught in the fracas, you are done. You buy a new car. Because you were never covered
Teachers will not be in class for an infinite time at least according to media reports. Kenyan teachers are seeking 50 to 60 percent pay rise which translates to 17 billion additional money needed to pay them. The court awarded it and court of appeal cemented it after the employer appealed the case. Continue reading “Stagnant wages is not a Kenyan Problem”