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