Are you a vehicle owner in Nigeria? Are you still having issues understanding your rights in Motor insurance? Here insurance expert, Victoria Bolajoko Adegbaju in this write up explains the rights of a vehicle owner and benefits of having insurance.
Section 68 of insurance act 2003, has made it compulsory for any vehicle owner to have a minimum of third party insurance cover on the vehicle before putting it on the road.
The insurance cover is to compensate the insured on the liabilities arising out of the use of that vehicle (either to 3rd party or the vehicle owners).
Several times you hear people expressing their displeasure about one insurance company or the other because they are not satisfied with the service.
The truth is that they don’t know their rights as policyholders.
What exactly are your rights under your motor insurance policy?
As a policyholder, you have the right to:
• Ask question from the insurer.
• Claim any loss, even on third party cover, if you have fulfilled your own part of the contract.
• Fleet discount on comprehensive cover if the vehicles are more than one.
Classification of motor vehicles
In most cases people argue when they are told that a bus used for private purposes is classified as a commercial vehicle.
For the purpose of insurance, vehicles are classified into:
• Private cars
• Commercial vehicles:
• Cycles
• Special vehicles.
Example of vehicles categorized as private for the purpose of insurance
• Saloon cars
• Station Wagon cars
• Jeeps
Example of vehicles categorized as commercial for the purpose of insurance
• Buses
• Trucks/Trailers
• Lorries
• Pick-ups
Example of vehicles categorized as cycles for the purpose of insurance
• Motorcycles (Okada)
• Tri-cycles (KekeNapep)
Example of vehicles categorized as special vehicles for the purpose of insurance
• Tractors
• Ambulance
Categories/types of cover
• Acts only
• Third part only
• Third party fire & theft
• Comprehensive, of all these categories, the first is not available in the Nigerian insurance market.
Third party only
Scope of cover:
• This covers policyholder liability to 3rd party only.
• This liability can be in form of bodily injury, death or property damage.
• While there is a limit on property damage claim, claims on bodily injury and death do not have limit.
Third party, fire & Theft
Scope of cover
This includes, either:
• Policyholder’s liability to third party
• Damages causes by fire to vehicle insured.
• Loss resulting from theft of the vehicle insured.
A distinctive part is that accidental damages to the car insured are not covered.
Comprehensive (Scope of cover)
This includes, either:
• Policyholder’s liability to third party
• Damages caused by fire to the vehicle insured.
• Loss resulting from theft of the vehicle insured.
• Damages to the vehicle insured, resulting from accidents.
• Theft of accessories or parts of the vehicle.
Requirements for provision of cover (individuals)
These may vary from one insurer to the other, but the most common ones are:
• Completion of proposal form
• Copy of vehicle license
• Copy of purchase receipt
• Copy of Proof of ownership
• Premium payment
Requirements for cover (corporate)
• Completion of proposal form.
• Copy of vehicle license.
• Copy of purchase receipt
• Copy of proof of ownership
• Premium payment
• Physical inspection/photographs
• Copy of Utility bill.
• Copy of valid ID.
• Certificate of incorporation.
Modestus Anaesoronye
