How to get your personal vehicle repaired with your 3rd party motor insurance policy

TO DESCRIBE THIRD PARTY INSURANCE

Statutorily, driving without a genuine motor insurance certificate is forbidden by law (Insurance Act 2003), Third-Party insurance is the most recognised insurance cover in Nigeria today even though there are other insurance policies made compulsory by law. Under this policy, the main beneficiary is neither policyholder or the insurance company that issued the policy but third party, however the insured legal liability is covered in the vent/disability of third party loss or damage to their party property (Are you even aware of this?).

So, why do you really need a Third-Party insurance?

If you are driving your vehicle on the road (especially, our Nigerian roads – LOL), a motor insurance policy comes in handy in the event of your vehicle being involved in an accident with another vehicle, this policy takes care of total/permanent disability, temporary disability, bodily injury or death of a person (Unlimited Cover), damage to properties/assets belonging to another person (up to N1million) and Legal and financial liabilities arising from accidents.

Even though, the average Nigerian sees this policy as “Oga Police, let me pass”, we ignorantly purchase this policy while renewing our insurance papers and forget to confirm its genuineness/authenticity and drive around with it, when a an accident occurs and you meet a knowledgeable or informed policyholder or FRSC official whose only request is your insurance papers…then, you will understand the importance of buying a genuine insurance cover for your vehicle.

How much does it cost, and how do you confirm if your insurance is genuine?

The insurance regulators through Federal Government have pegged the price of a genuine motor 3rd party at just N5,000 per annum. Also, NAICOM through it’s the association of its operators – Nigerian Insurers Association (NIA) had also embarked on a nationwide campaign of the use of a USSD Code – *565*11# or Website – www.askniid.org for insurance policyholders (All Motor Policies) to confirm if the their insurance certificates are authentic.

Now, that 3rd Party vehicles are covered, what happens to MY VEHICLE?

This question has made a lot of insurance agents/marketers and insurance companies lose a sizable number of their customers due to lack of – product knowledge, motor insurance product variants, sometimes regulatory backlash on product development initiatives of insurance companies etc.

Today’s insurance customers are more aware and research global trends around products that they need which increase agitation, hence, the introduction of the Enhanced Third Party Motor Insurance Policy.This policy gives insurance customers without the financial capability (considering the COVID-19 pandemic effects on our pockets too) to purchase a Comprehensive or Third Party, Fire and Theft motor insurance policy an opportunity to have their personal vehicles covered in the event of an accident involving third party (Own Damage Cover).

Interesting right?! Well, there is more in terms of benefits – See Table Below

S/NDETAILS OF COVERBENEFITS
1Third Party property damageN1million  
2Third Party bodily injury & deathUnlimited  
3Accidental (Own) damage involving third partyTo a limit of N500,000  
4Medical expenses to insured/Driver from the accidentTo a limit of N50,000  
5Legal Fees & Expenses To a limit of N50,000  
6Towing of vehicle (insured vehicle only)To a limit of N10,000  

Which insurance cover is right for you?

If you are in need of a policy that cover you and your vehicle in terms accidental damages, fire, theft, burglary, collision, 3rd party etc, then you should go for a comprehensive insurance policy but it is more expensive than 3rd party fire and theft, Enhanced 3rd party and 3rd party motor insurance. So, if you need a cover for your vehicle and 3rd party cover, then this policy highlighted above is your special COVID-19 Rescue Package in Naija (LOL).

What is the premium payable and where can it be purchased?

The Enhanced 3rd Party Motor Insurance cover can be purchased with a minimum of N7,500 and above depending on the product variants, type of vehicle and other considerations and limits as stated in the product fliers of insurance companies, insurance brokers or agents/consultants selling the product.

If you have questions relating to your motor insurance policy and do not understand the technical jargons written, we can assist you with a FREE POLICY REVIEW to ascertain the level of cover you have and how to achieve more with your insurance policy (in terms of benefit). We are just a chat away on WhatsApp.

Acknowledgment

The author would like to thank and acknowledge the contributions made by Adebiyi Muhammed, a Team Lead, Schemes and Retail with YOA Insurance Brokers Limited in their Lagos office. He can be reached at muhammed.adebiyi@yoainsurance.com.