With an annual car insurance premium of N5,000, a motorist can effectively claim third party damages of N1 million.
Automobile liability insurance covers the liability of the insured in the event of death/injury to a third party and loss or damage to the property of third parties in the event of a traffic accident.
Although this is one of the compulsory insurance policies in Nigeria, it is the legal minimum level of car insurance cover that any motor vehicle owner traveling the Nigerian roads is required to have. by the law.
The investigation shows that the policy pays for damage caused by the insured to the Third Party’s property or vehicle, as well as the Third Party’s medical expenses (if applicable) in the event of an accident, when the insured is at fault .
To this end, it covers accidental damage to the property or vehicle of a third party up to N1 million, as this form of insurance is expected to reduce disputes over liability for repair costs at the scene of the accident between two or more drivers of vehicles.
The outgoing Chairman, Nigerian Insurers Association (NIA), Mr. Ganiyu Musa, has enjoined other motorists to take out a car insurance policy of at least 5,000 Naira as this guarantees them up to 1 million Naira . Sum insured in the event of a third-party party vehicle.
Musa, who is also the Group Managing Director/CEO, Cornerstone Insurance Plc, revealed that the cost of replacing damaged vehicles or other assets has actually increased in recent times, stating that the cost of replacing certain auto parts is unimaginable, compared to a paltry sum of N5,000 bounty.
On his part, the Executive Secretary/CEO of the Nigerian Board of Registered Insurance Brokers (NCRIB), Mr. Tope Adaramola, acknowledged that insurance companies as well as brokers still need to do more to raise awareness, especially , to third-party automobile insurance, stating that his association, through its six regional committees, has done a lot in this regard, although it could be better.
He instructed motorists to insure their vehicles through insurance brokers who, in addition to enlightening them at the time of signing the insurance contract, will also help them easily recover their claims from insurance companies. insurance.
He said the pinnacle of insurance is peace of mind, adding that “it often baffles me when I see two enlightened people fighting on the roads in an accident, when they could have swapped insurance respective automobile against having their cars repaired.The repair of third party covers is in the range of 1 million naira when in reality you have paid a premium of 5,000 naira.
Insurance companies as risk buyers, he said, will always return the insured to the financial position they were in before insurable risks arose, urging people to use the tool of insurance to replace their assets.
The Federal Roads Safety Corps (FRSC) Act requires every automobile on Nigerian roads to have at least a third party automobile insurance policy or comprehensive insurance coverage which is between 5 and 10% of the value of a vehicle. vehicle.
Third party vehicle insurance is offered at a fixed price of N5,000 for sedans and SUVs for private use, while vehicles for commercial use are charged at N7,500. But recently, N5,000 has been the flat rates for all cars.