Can I use my own credit life provider instead of the bank's?

Yes. Under the Banking Act and the IRA's market conduct guidelines, you are entitled to nominate your own insurer for credit life, provided the cover meets the lender's terms (sum assured, benefits, and naming the bank as beneficiary). We handle the paperwork with your lender.

What happens if I settle the loan early?

On full loan settlement, the credit life policy lapses. Most insurers refund the unearned premium on a pro-rata basis. We will follow up the refund on your behalf.

Does credit life cover suicide?

Standard credit life policies exclude suicide for the first 12 or 24 months (the exact period varies by insurer). After that, death by suicide is typically covered like any other cause.

Do I need a medical exam?

For motor loan credit life up to about KES 5M, most insurers accept a simple health declaration with no medical exam. Above that threshold, or for older applicants, a basic medical (blood pressure, blood sugar, sometimes HIV screening) is usually required.

Motor Insurance

Motor Credit Life Insurance

Settles your outstanding motor loan balance if you pass away or are permanently disabled before the loan is fully repaid.

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Motor credit life is a specialised life assurance product attached to a motor finance facility. If the borrower dies or suffers total permanent disability before the loan is repaid, the policy clears the outstanding balance directly with the financier — leaving the vehicle (and the family) free of the debt. Most Kenyan banks and sacco asset finance windows now require credit life on any motor loan above a modest threshold.

Vike places motor credit life with insurers who price the cover transparently and pay claims directly to the lender on production of a death certificate or medical disability report. We compare premiums across the market — many borrowers are surprised to learn that lender-arranged credit life can be 30–60% more expensive than an equivalent broker-placed policy, with identical terms and the same lender named as the beneficiary.

What It Covers

Full settlement of the outstanding loan balance on death from any cause
Full settlement on total and permanent disability (industry-standard definitions)
Terminal illness benefit — early payout if a doctor certifies less than 12 months to live
Cover during the entire loan term, with the sum assured reducing as the loan amortises
Funeral expenses benefit on many policies (typically KES 50,000–200,000 advance to the family)
Premium waiver during temporary disability on selected products

Who It's For

Anyone financing a private car, pickup, lorry, PSV, or motorcycle through a bank, sacco, or asset finance company
Borrowers whose lender requires credit life as a condition of the loan (most do)
Self-employed borrowers without group life cover through an employer
Sole income earners protecting dependants from being saddled with the vehicle debt

Types We Cover

Each profile is rated and underwritten differently. Talk to us so we can match your specific situation.

Single-Life Credit Life

The standard product. Covers one borrower for the full loan term. Sum assured matches the loan amortisation schedule.

Joint-Life Credit Life

Covers two co-borrowers (typically spouses or business partners). Pays out on the first death, clearing the loan for the survivor. Slightly higher premium than single-life.

Decreasing Term Credit Life

The most common structure: sum assured reduces month-by-month in line with the loan balance. Cheaper than level cover because the insurer's exposure shrinks over time.

Level Term Credit Life

Sum assured stays flat for the loan term. The surplus on payout goes to the family after clearing the loan. Useful where the borrower wants to leave residual value.

Real-World Scenarios

Borrower dies two years into a five-year car loan

The insurer pays the outstanding loan balance (typically 60–70% of the original loan at that point) directly to the bank. The family receives the logbook free of the lender's interest. Without credit life, the family would either continue the loan, sell the car, or face repossession.

Sole-trader truck owner suffers a permanent disability

On certified total permanent disability, the policy settles the outstanding commercial vehicle loan in full. The borrower keeps the truck (which can be operated by an employee) and is not pursued by the bank during recovery from the disability.

Bank-arranged versus broker-arranged premium

A Vike client financing a KES 3M SUV was quoted KES 78,000 annual credit life by the bank's tied insurer. We placed equivalent cover with the same lender named as loss payee for KES 41,000 — a KES 37,000 saving with no change in benefits.

Optional Benefits & Add-ons

Funeral Expenses — immediate cash advance to the family on death

Critical Illness rider — early payout on heart attack, stroke, cancer, etc.

Retrenchment cover — pays loan instalments if you lose employment involuntarily

Premium waiver on temporary disability

Spouse and children's funeral benefit

Availability varies by underwriter. Our advisors will confirm what is available on your chosen policy.

Frequently Asked Questions

No. Motor insurance covers the vehicle (accident, theft, third party). Credit life covers the loan — it pays the bank if you die or are permanently disabled. Both are usually required when you finance a vehicle, and they are entirely separate policies.