For some people their vehicle is their pride and joy. For others, simply
a way of getting from A to B. Whatever it is, there is the need for 'peace of
mind’ Vehicle Insurance.
Trust you would want to avoid the headache, stress and commotion of what
best to get out of your car insurance. Hence, what are your options and how
should your choice be guided?
COMPULSORY MOTOR THIRD PARTY (MTP)
INSURANCE
As it implies, MTP insurance is statuary by Third Party Act 1969. You
cannot register a vehicle in Nigeria without it. In Nigeria, you are required
to organize this with an insurer or brokerage firm if you so desire.
What is THIRD PARTY INSURANCE?
It Insures you and any other driver of your vehicle against liability
for death or injuries you may inflict on other road users as a result of motor
accidents for which you or your driver are at fault. As
stated third party covers just the injuries caused to other people in an
accident and the damaged caused to their property or vehicle up to a limit of #1,000,000 naira (i.e. varies with
different underwriters).
 |
| beware of fake third party insurance policy in Nigeria |
COMPREHENSIVE MOTOR VEHICLE INSURANCE
Comprehensive Insurance covers damage/loss to your vehicle, theft, fire
and property. This is in addition to the Third Party cover on your vehicle.
Better to be safe than sorry; because no one envisages an accident and
it may well happen at the worst possible time, financially.
SO WHY TAKE A COMPREHENSIVE MOTOR VEHICLE INSURANCE
COVER;
Compared to third party cover, comprehensive policy also takes care of
damages to you I.e. you get the benefits of third party policy with all the
benefits also attached to you.
Unlike third party where you have a limited coverage on damage, injuries
and other liabilities, comprehensive motor vehicle policy is not limited to
that but its limit is established on the value (sum insured).
· Is it
risky to buy third party insurance? In Nigeria you would be aware of news of fake third party insurance
cover offering no protection at all. However, it’s vital to be aware that third
party cover won’t provide you with the level of protection that a fully
comprehensive policy would offer.
· Is third
party car insurance the cheapest option for you? Not necessarily because all insurance policies are priced in accordance
with risk, its therefore possible that third party insurance isn’t the cheapest
option for you. In fact, you might find you can buy superior cover at a lower
price.
Want to know more about motor insurances, further clarification, you can contact us. We will be glad to hear from you.
Reach Us
12th floor, Reinsurance house
46 Marina, Lagos, Nigeria
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