What is motor insurance?


Motor insurance is a form of protection/risk-transfer mechanism which covers an array of vehicles including cars, vans and motorcycles.


Is cover available for both private and commercial purposes?


Yes, this is available and when you are taking the steps to affect an insurance policy. You’ll just need to select what purpose(s) the vehicles will be used for.


Is insurance a legal requirement?


Yes, at a minimum third party insurance is mandated by The Nigerian Insurance Act 2003, section 68 (which extended the scope of the original 1950 Insurance act).


What does third party insurance cover?


  • Covers liability for death and bodily injury to a third party arising from the use of your vehicle


  • Cover in the event of damage to the property of a third party, to the tune of N1millon.


Is driving without insurance a criminal offence and if so what is the punishment?


Yes, it is a criminal offence to drive on Nigerian roads without having a third-party insurance policy at the very least. 

The punishment for non-compliance is a one year imprisonment term and/or a N250,000 fine based on the extent of non-compliance. 


Why should I choose motor insurance?


Besides being a prudent move, you’ll save yourself the headache and anxiety of worrying what may go wrong in the event of an accident occurring and the attendant consequences, due to the actions or inactions of other Nigerian road users.


What are the different types of insurance cover?


These are as follows:

  • Comprehensive:  Covers third party liability, theft, fire and other accidental damages or loss to the insured’s vehicle


  • Third party fire & theft:  Covers damage to the insured vehicle and/or bodily injury to third party, as well as Fire damage and theft of the insured's vehicle
  • Third party:  Covers damage to the insured vehicle and/or bodily injury to the third party.



How do I affect a motor insurance policy?


  • Follow the designated steps on the insurance section of the Money Matters site


  • Fill the mandatory boxes with the info relevant to your circumstances: 

1) Name of the vehicle owner, 

2) registration number, 

3) engine and chassis number, 

4) type and 

5) value(s) of the vehicle(s)  

6)   Choose (tick the designated box) whether it is a Takaful/Islamic insurance product



  • Choose the best priced quote and select the option at the bottom of the page to move to the final stage


  • Submit payment using the online POS option (a safe and the most convenient payment option) or make contact with our customer service team to conclude policy arrangements.


Can I insure more than one vehicle?


Yes, you can and you’ll just need to choose the option and provide the necessary details to affect cover for all the vehicles you wish to do so for.


What is the name of the payment that is made to affect cover?


The payment required to affect an insurance policy is called a ‘premium’ in insurance parlance. It is often payable in advance of the insurance policy being affected.

How are premiums calculated?

This is calculated based on a percentage of the estimated value of the items or property being insured.


What happens in the event of an accident and a claim needing to be made?


  • You will have contact and other relevant info/instructions provided from the policy’s inception. These will help you as you make contact with the insurance provider


  • In the event a claim needs to be made, this will be registered by the insurance provider’s customer service rep 



  • You’ll be notified whether the claim is successful or not


  • Once confirmation has been received that the claim is successful, the amount that the claim is for will be paid out, less the excess fee.


What is an excess?


An excess is a pre-determined figure which the insured will forfeit in the event of a successful claim being made. This can be looked at as a nominal or small contribution to the cost of repairing damage or replacing a motor vehicle. 

An example of an excess is: a successful claim may be made for the value of N1million. If the excess is N100,000, then the claimant (you) will receive N900,000.


Is there any reason why a claim may be unsuccessful?


As long as you are honest about the details required to affect motor insurance cover, and honest in providing all the relevant info when making a claim, there’s no major reason for concern.

Typically, unsuccessful claims arise in the event of a customer committing insurance fraud or violating any terms of her/his insurance policy


Money Matters is a comparison site across many different services. Our wide variety of options listed enable customers to benefit from the best-priced deals available, and vendors to gain from increased business. Make us your choice today!

CONTACT US

Ikeja, Lagos
Nigeria

Phone: (+234) 802 7152 761 , (+234) 906 9387 045 , (WhatsApp) +234 803 096 8197

E-Mail: insurance@moneymatters.com.ng

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