• By Raymond Momanyi

Own Goods vs. General Cartage: The Critical Difference in Your Commercial Truck Insurance

As a truck or bakkie owner in Kenya, you know that commercial vehicle insurance is a non-negotiable cost of doing business. But are you certain you have the right cover? Choosing the wrong policy, specifically between "Motor Commercial Own Goods" and "Motor Commercial General Cartage," is one of the most financially dangerous mistakes a transporter can make.

This guide will break down the differences, explain the real-world consequences of getting it wrong, and show you how to properly protect your business, your vehicle, and your clients' cargo.

The Core Difference: Whose Goods Are You Carrying?

The entire distinction between these two policies boils down to a single question: Are you carrying your own goods, or are you carrying goods for someone else for pay?

1. Motor Commercial (Own Goods)

This is the policy for businesses that use their vehicles to transport goods directly related to their own operations. The "limitation as to use" on this policy strictly states that the vehicle is not for hire or reward.

• Who is it for? A supermarket using its lorry to move stock from its warehouse to its branches. A hardware store delivering cement and supplies to its customers. A farmer taking their own produce to the market.
• What does it cover?
  • Comprehensive: Covers your vehicle against accidental damage, fire, and theft, plus your legal liability for third-party injury, death, or property damage.
  • Third-Party Only (TPO): This is the mandatory minimum. It only covers your legal liability for third-party injury, death, or property damage. It does not cover your own truck.

2. Motor Commercial (General Cartage)

This is the policy required for any business that transports goods belonging to other people in exchange for payment. This is the correct cover for transporters, logistics companies, and hauliers.

• Who is it for? A logistics company hired to move a client's container from the Port of Mombasa to Kampala. A truck owner contracted by a factory to distribute its finished products. Anyone operating as a "carrier for hire."
• What does it cover?
  • Comprehensive: Covers your vehicle against accidental damage, fire, and theft, plus your legal liability for third-party injury, death, or property damage.
  • Third-Party Only (TPO): Only covers your legal liability for third-party injury, death, or property damage.

The premium for General Cartage is typically higher than for Own Goods. This is because the risks are greater—you are on the road more often, carrying goods of unknown value, and operating as a professional transporter.

The Million-Shilling Question: What if I'm Insured for "Own Goods" but Carry Goods for Pay?

This is a scenario we see all too often. A hardware owner with an "Own Goods" policy is asked by a friend to transport their goods for a "small fee." Or, to make extra cash, they take on a delivery job.

Let's be crystal clear: The moment you carry goods for hire or reward on an "Own Goods" policy, your insurance cover is effectively invalid for that journey.

Imagine this:

• The Scenario: You are insured for "Own Goods." You take a KSh 50,000 job to transport a client's electronics. You get into an accident. Your truck is wrecked, the client's KSh 2,000,000 worth of goods are destroyed, and you damage another car.
• The Outcome:
  1. Your Insurer: During the claim investigation, the insurer will discover the nature of your journey (e.g., from the police abstract, delivery notes, or statements). They will find you were operating outside the specified use of your policy.
  2. Claim Repudiation: Your insurance company will reject your claim. They will not pay for:
     • The repairs to your truck.
     • The KSh 2,000,000 loss of your client's electronics.
     • The damage to the third-party car you hit.
  3. The Consequence: You are now personally and solely responsible for all these costs. The client will sue you for their lost goods, and the third-party driver will sue you for their vehicle repairs. This single incident could bankrupt your business.

The Missing Piece: "My General Cartage Policy Doesn't Cover the Goods!"

This is another critical point of confusion. You've done the right thing and bought a Motor Commercial General Cartage policy. But read the fine print: A standard motor policy (even General Cartage) is designed to cover the vehicle and your third-party liabilities. It does NOT cover the client's goods you are transporting.

This is where Carrier's Liability Insurance (often sold as Goods in Transit - GIT insurance) comes in.

How Carrier's Liability Complements General Cartage:

Think of them as two policies that work together:

1. Motor Commercial (General Cartage): Covers your truck and your liability to the public.
2. Carrier's Liability (GIT): Covers your legal liability for the client's cargo that is in your possession (in transit or in temporary storage).

If you are a professional transporter, you need both. Without GIT, if you have an accident, or the goods are stolen, your motor policy will help you fix your truck, but you will still be sued by your client for their lost cargo.

Smart Add-Ons: Supercharge Your Motor Commercial Policy

Whether you have an "Own Goods" or "General Cartage" policy, you can add optional extensions (benefits) to enhance your cover. Always ask your insurance provider about:

• Excess Protector: Buys out the "excess" (the first portion of a claim you must pay).
• Political Violence & Terrorism (PV&T): Covers loss or damage from politically motivated riots or terrorism. A must-have in volatile regions.
• Riot, Strike & Civil Commotion (RSCC): Similar to PV&T, this covers damage from non-political civil unrest.
• Windscreen & Radio Cover: Often included with a "free" limit (e.g., KSh 30,000), but you can pay a small extra premium to increase this limit.
• Towing & Recovery: Covers the cost of towing your vehicle after an accident.
• COMESA Yellow Card: A separate policy that extends your third-party liability cover to other COMESA member states. Essential for cross-border transporters.
• Loss of Use: Provides a daily cash amount for a set period while your vehicle is being repaired.

Get the Right Advice

Navigating commercial insurance is complex, and the stakes are high. The difference between "Own Goods" and "General Cartage" isn't a minor detail—it's the foundation of your business's risk management.

As a trusted insurance intermediary, we at Imana Insurance Agency specialize in helping logistics and business owners find the right cover. We can help you compare quotes for Motor Commercial, Goods in Transit, and Carrier's Liability from Kenya's top insurers to ensure you are fully protected without paying for cover you don't need.

Don't risk your entire operation. Let's talk about your specific needs today. Motor Commercial Insurance Kenya

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Courtesy of:

Imana Insurance Agency Kenya Ltd, Website - www.imana.co.ke or www.mykava.co.ke, WhatsApp - +254 796 209 402 or +254 745 218 460