Ignorance they say is a disease and what you don’t know can sometimes cost you much.
Two years ago, fortune smiled on my friend Mr. Tough and he got a new car for N2,500,000.00. All our effort to ensure he insured it proved abortive as he claimed to be a “strong man”. Some months after, he was involved in a road accident where he damaged his car, another person’s car and also injured a pedestrian. He spent over N500,000.00 in repairing the 3rd party’s car and settling medical bills for the injured party. Something he would have done for just N5,000.00 if he had obtained a 3rd Party Motor Insurance cover.
Being involved in an accident is bad enough, why allow yourself suffer a public embarrassment because of your inability to preempt the future? One of our major challenges in this part of the world is that we have an habitual tendency to not prepare for adverse eventualities. Our optimism is often time a curse than it is a blessing probably due to ignorance or sheer stupidity. One area we display this is in our negative attitude towards insurance.
What is a third party motor insurance?
As the name implies it is an insurance cover for 3rd parties i.e. person(s) other than you. The insurance company is the first party, you are the second party and other road users are the third party(ies). The law seeks to protect other road users from any harm they may suffer while your vehicle is on the road.
Why do you need it?
One of the major requirements to drive an automobile on the Nigerian road is the possession of an auto insurance policy that would carter for at least other road users who may suffer a loss as a result of your negligence on the road. Failure to adhere to this is a crime punishable under the law – Motor Vehicles (Third Party Insurance) Act 1945 Sec. 3(1).
What are the benefits?
- No harassment from the law enforcement agencies like the police, Federal Road Safety Corpse (FRSC) and Vehicle Inspection Officers (VIO). It is the minimum insurance requirement to drive a vehicle in Nigeria.
- Covers medical expenses incurred on an injured 3rd party(ies)
- Covers burial expenses for other road user(s) who died following an accident cursed by your vehicle
- Covers damage to 3rd party property(ies) up to a specified amount (usually N1,000,000.00)
- And legal fee or compensation awarded against you to a 3rd party by a law court following a loss caused by your vehicle.
How much is it?
There is a fixed rate for different categories of vehicles. It is N5,000.00 for saloon cars, SUVs, Jeeps and mini-buses.
Where can you obtain it?
All general business insurance companies in Nigeria or you can contact me for more enquiries.