Factors affecting the use of cross border insurance for motor vehicles in Kenya. The case of Namanga Border Post
This study looked at factors affecting the use of cross border insurance for motor vehlctes in Kenya. The study sought to determine whether cost, availability of motor Insurance cover, participation by law enforcers, awareness of benefits and use of alternative third party motor vehicle insurance affect the level of using cross border motor vehicle insurance by traders. The sample was drawn from Commercial vehicles crossing Namanga border point from Kenya to Tanzania. 50 vehicles comprising the category of trailers and lorries, 25 buses and 25 vehicles in the category of tour vans and personal business vehicles were considered. These were picked by the sampling method of stratification. Primary and secondary data for this survey study were collected using questionnaires and an interview guide. The data collected was analyzed using the students' edition of SPSS. The findings indicated that most motorists crossing the border were aware of the existence of the Regional cross border motor vehicle insurance but many of them were not utilizing it as they were not aware of the benefits, it was not easily available and the alternative ordinary third party insurance was cheaper because its price considered the short period for traveling across the border. Respondents stated that police mostly did not record the information on the insurance documents but conducted casual checks and accepted all types of insurance certificates used by the travelers. Police and customs officials indicated that only 40% of commercial vehicles crossing the border point use the Yellow Card cross border motor vehicle insurance. They suggested that awareness campaigns should be conducted in order to sensitize motorists on the benefits of using the Yellow card cross border motor vehicle insurance. The cost should be harmonized to match that of the ordinary third party insurance for short periods. The study recommends that The COMESA Secretariat, the body which oversees regional activities together with National Bureaux coordinating the operations of the Yellow card motor vehicle cross border insurance and all member insurance companies in the region liaise and conduct advertising campaigns by using all sources of media to create awareness. The COMESA regional body should also push for the protocol of the regional motor vehicle insurance scheme to be passed into law by the governments of the member states.