Do you know the benefits of a third party motor insurance? Before we delve into the benefits, let’s understand what third party motor insurance means.

Third party car insurance means that the person that is not a party to the agreement between the insured (car owner) and the insurer (insurance company) is covered when there is a claim. Motor third-party insurance is a compulsory policy for all car owners in Nigeria and it is backed by law. Third party motor insurance only covers the following:

1. Third party property damage,
2. Third party bodily injury or death.

For example, if you insure your car on third party only insurance (the premium is N5,000.00), and you get involved in a road accident where you are at fault, the insurance company will be liable for the repair of the other person's car while you repair your own car. Also, if you damage somebody's property like a building's fence in an accident, the fence will be repaired by the insurance company. However, you should take note that there is a certain limit to what the insurance company will pay for motor third party property damage. The maximum is N1,000,000.00, but some can pay as high as N2,000,000.00.

The main importance of third party motor insurance is for the protection of other road users while you use your car. If compensation for bodily injury or death, or the repair of a third party car is more than the insurance contract limit, then you would be required to pay the excess. For example if you are involved in an accident and the claim is N1,400,000.00 after adjustment. If your policy limit is N1,000,000.00, what it means is that the third party will be paid N1,000,000.00 by the insurance company while you will pay the remaining N400,000.00 to the third party to settle the claim. The limit can be drawn many times during the policy year, but it cannot exceed the limit.

In Nigeria, many car owners and drivers believe motor third party insurance is among the vehicle license documents that make it legal for them to use the road. In fact, only 1 in 100 car owners understand that third party car insurance is not just a document for road usage, but a savior in times of unexpected occurrences. When you run into Police or other agency road blocks, and your car particulars are checked, if you do not possess third-party insurance, you would be arrested. So, what really does the third party insurance do than allow car owners free passage during stop-and-search by government officials like the Police?


The Benefits of Third Party Motor Insurance:

1. Peace of mind when you are driving your car.
2. Confidence when you get into an accident on the road.
3. Control over your loss (i.e. you do not shoulder claims’ liability alone after an accident).
4. Shift of burden (i.e. instead of worrying over third party loss, the Insurer supports you).
5. Security (i.e. you do not have to get in a fight with any third party).


What & How Can You Invoke The Third-Party Insurance Policy?

Anytime you get involved in any of the scenarios mentioned in the previous paragraphs (and covered in the insurance contract); all you need to do is file a claim. You can file a claim directly via the Insurance Company or the agent that underwrote the insurance policy for you. Make sure you have clear photo evidences, and receipts (in case you paid for part or the full claims already).

By Jimoh Akintobi (08174839915, 07038152995)

https://autojosh.com/5-benefits-third-party-motor-insurance-didnt-know/

Lalasticlala
Mynd44
Ishilove
Marpol
Semid4lyfe
Obinoscopy
Seun

Okay before I start my FTC comment lemme 1st of all wish y'all a happy and joyfull day..

Ok
Do check dis out
https://www.nairaland.com/4076198/

Jesus! All these nïggas above me, Na 24G una Dey use?

For naija e no fit work. At all

These are the supposed benefits, but in Nigeria, with third party insurance, sorry na you name.

Maybe it's applicable in the US not here in Nigeria

AutoJoshNG:
Do you know the benefits of a third party motor insurance? Before we delve into the benefits, let’s understand what third party motor insurance means.

Third party car insurance means that the person that is not a party to the agreement between the insured (car owner) and the insurer (insurance company) is covered when there is a claim. Motor third-party insurance is a compulsory policy for all car owners in Nigeria and it is backed by law. Third party motor insurance only covers the following:

1. Third party property damage,
2. Third party bodily injury or death.

For example, if you insure your car on third party only insurance (the premium is N5,000.00), and you get involved in a road accident where you are at fault, the insurance company will be liable for the repair of the other person's car while you repair your own car. Also, if you damage somebody's property like a building's fence in an accident, the fence will be repaired by the insurance company. However, you should take note that there is a certain limit to what the insurance company will pay for motor third party property damage. The maximum is N1,000,000.00, but some can pay as high as N2,000,000.00.

The main importance of third party motor insurance is for the protection of other road users while you use your car. If compensation for bodily injury or death, or the repair of a third party car is more than the insurance contract limit, then you would be required to pay the excess. For example if you are involved in an accident and the claim is N1,400,000.00 after adjustment. If your policy limit is N1,000,000.00, what it means is that the third party will be paid N1,000,000.00 by the insurance company while you will pay the remaining N400,000.00 to the third party to settle the claim. The limit can be drawn many times during the policy year, but it cannot exceed the limit.

In Nigeria, many car owners and drivers believe motor third party insurance is among the vehicle license documents that make it legal for them to use the road. In fact, only 1 in 100 car owners understand that third party car insurance is not just a document for road usage, but a savior in times of unexpected occurrences. When you run into Police or other agency road blocks, and your car particulars are checked, if you do not possess third-party insurance, you would be arrested. So, what really does the third party insurance do than allow car owners free passage during stop-and-search by government officials like the Police?


The Benefits of Third Party Motor Insurance:

1. Peace of mind when you are driving your car.
2. Confidence when you get into an accident on the road.
3. Control over your loss (i.e. you do not shoulder claims’ liability alone after an accident).
4. Shift of burden (i.e. instead of worrying over third party loss, the Insurer supports you).
5. Security (i.e. you do not have to get in a fight with any third party).


What & How Can You Invoke The Third-Party Insurance Policy?

Anytime you get involved in any of the scenarios mentioned in the previous paragraphs (and covered in the insurance contract); all you need to do is file a claim. You can file a claim directly via the Insurance Company or the agent that underwrote the insurance policy for you. Make sure you have clear photo evidences, and receipts (in case you paid for part or the full claims already).

By Jimoh Akintobi (08174839915, 07038152995)

https://autojosh.com/5-benefits-third-party-motor-insurance-didnt-know/

Lalasticlala
Mynd44
Ishilove
Marpol
Semid4lyfe
Obinoscopy
Seun

Abeg if person buy Nigeria used vehicle, does the insurance still cover the new owner?

U don't need today's seminar

3rd party insurance in Naija ke. Even comprehensive insurance sef, AIICO go request for ur great grandfather birth certificate before they pay ur claim!

Comprehensive is bae.

waledeji:

Abeg if person buy Nigeria used vehicle, does the insurance still cover the new owner?

Insurance can not be transferred.


Except the old owner help u make the claim.

AntiWailer:


Insurance can not be transferred.


Except the old owner help u make the claim.

OK what of if I want to renew the paper, can it be transferred to me totally?

waledeji:

OK what of if I want to renew the paper, can it be transferred to me totally?

U just ignore the old insurance completely and pay new premium in your name.

That's all.

Thanks for the information.
In Nigeria, the policy is just to fulfill all righteousness with respect to vehicle documents a car owner must have.
More importantly to enrich insurance companies. Nothing more, nothing less

calmbabadee:
These are the supposed benefits, but in Nigeria, with third party insurance, sorry na you name.

Some of us Nigerian's are the one disvalue the integrity of this country. Do you have third party insurance, hw do you Know it will not work?

waledeji:

Abeg if person buy Nigeria used vehicle, does the insurance still cover the new owner?

If i understand your question very well; you bought a Nigerian used vehicle and you intend to insure it as the new owner or are you saying the old-owner's subsisting insurance for the vehicle (if it hasn't expire)....will cover you in the event of an accident?

The answer to your question and the scenarios i painted above is Capital YES.

Incase you don't still understand, please feel free to ask.

N5000 insurance (annual) premium can only cover u when ur headlamp or brake light is damage in an accident that is when u have time to claim yeye insurance damages. Some people even print out the old ones and put recent date incase when suffer head police officers stop them on the road...for genuine insurance, u can't pay nothing less than 20-50k when u covert it to niara (monthly) premium, that's how it works in UK if u want to be driving.

caniva:


If i understand your question very well; you bought a Nigerian used vehicle and you intend to insure it as the new owner or are you saying the old-owner's subsisting insurance for the vehicle (if it hasn't expire)....will cover you in the event of an accident?

The answer to your question and the scenarios i painted above is Capital YES.

Incase you don't still understand, please feel free to ask.

Yes you are right, I recently bought a Nigerian used car and the insurance paper will expire by January next year, what I want to know is that between now and that January am I covered with that paper that is still carrying the seller name?

Good writeup.. Third party auto insurance is a must have for car owners in Nigeria if you cannot afford to buy a comprehensive insurance.

Stay away from cheap, fake policies. You will only be patronising thieves and encouraging criminality, besides you'll be on your own whenever there's a need to make claims. BTW, original 3rd party insurance costs around N5000.

waledeji:


Yes you are right, I recently bought a Nigerian used car and the insurance paper will expire by January next year, what I want to know is that between now and that January am I covered with that paper that is still carrying the seller name?

YES you are. Here is how it works.

God forbid, if anything happens before January next year. You'll approach the Insurance company and file for compensation.

What matters to them is the "policy number" and if they'll gotten that, they'll give you a form to fill.

There is a section, where they'll ask; "Who drives the car as at accident time" below are some of the options:

-Owner
-Owner's driver or Employee
-Others. (Relative, New Owner, etc)

As you can see....all you need to do is tick others.

So, while submitting, since you'll have all your evidence as new owner inclusive of "Transfer of ownership"

Sir or Ma....you are as good as the origial owner.

OboOlora:
3rd party insurance in Naija ke. Even comprehensive insurance sef, AIICO go request for ur great grandfather birth certificate before they pay ur claim!

I once did comprehensive insurance with AIIcO, just small 20k car damage, they almost frustrated me in that their Idawo Taylor office.

I decided to fix my car myself and ban them forever even start discouraging anyone that wants to use them. So with ur story, it has once again confirmed that AIICO insurance is a scam.

People aren't aware that they can make these claims.. The government should also mandate the insurance companies to pay on time

buJu234:


I once did comprehensive insurance with AIIcO, just small 20k car damage, they almost frustrated me in that their Idawo Taylor office.

I decided to fix my car myself and ban them forever even start discouraging anyone that wants to use them. So with ur story, it has once again confirmed that AIICO insurance is a scam.

That's too bad of them! These days insurance companies in Nigeria are working hard to outdo each other in terms of response time for claims in order to increase their credibility and stay on top.

Any insurance company that defaults in claims this period will gradually nail their death coffin. That's for sure.

Chineke!!! Na him emeka wan milk me dry cos I scratch him paint. Walahi insurance company don suffer. Thanks for this good enlightenment.

caniva:


YES you are. Here is how it works.

God forbid, if anything happens before January next year. You'll approach the Insurance company and file for compensation.

What matters to them is the "policy number" and if they'll gotten that, they'll give you a form to fill.

There is a section, where they'll ask; "Who drives the car as at accident time" below are some of the options:

-Owner
-Owner's driver or Employee
-Others. (Relative, New Owner, etc)

As you can see....all you need to do is tick others.

So, while submitting, since you'll have all your evidence as new owner inclusive of "Transfer of ownership"

Sir or Ma....you are as good as the origial owner.

. Thanks for info Man

Thank you, U go teach us about comprehensive insurance.

Thank u. U go teach us about comprehensive insurance too

buJu234:


I once did comprehensive insurance with AIIcO, just small 20k car damage, they almost frustrated me in that their Idawo Taylor office.

I decided to fix my car myself and ban them forever even start discouraging anyone that wants to use them. So with ur story, it has once again confirmed that AIICO insurance is a scam.

You can't really say AIICO insurance is a scam because there is what we call policy excess in every insurance policies. The policy excess varies according to the value of the car/properties you insured. Most policyholders find in difficult to read their policy documents. All they believed is that once there is a claim it must be settled by the insurance company. Your motor insurance policy excess might be more than N20k as such they are not liable to pay your claim.

Policy excess is what the insured bears out of the claim while the insurer takes care of the rest. For example you insured a car and the policy excess is N50k.if you're unfortunate to be involved in an accident and the liability is N200k. The insurer is liable to pay N200k less policy excess which in this case is N50k.What this means is that they are liable for N150k while you bear the N50k. Let us look at another scenario, you're involved in an accident and the liability is N45k. The insurer is liable to pay N45k less policy excess which means you have to bear the total cost of repairs because it is less than the policy excess.

However, there are some insurance companies that allow excess buyback in there policy for a fee but most don't have this clause in their policies.

Third-party insurance still work, and insurance companies do pay the problem is that most Nigerians do not know their right and benefits of the insurance scheme (3rd party) I too use to reason as such before I confirmed from friends that claimed damages and got 3rd parties car repaired by the insurance companies.

Please whenever you are being enlightened, is better to comment based on experience not on mere perception.