Saving Money By Leveraging Your 3rd Party Insurance For Vehicle Repairs

With N5,000 annual motor insurance premium, a motorist can actually claim N1million third party damages.

Third Party motor insurance covers the insured’s liability for death/injury to Third Party and loss or damage to the third-party property in the event of vehicular accidents.

While it is one of the compulsory insurance policies in Nigeria, it is the legal minimum level of motor insurance cover any motor vehicle owner plying the Nigerian roads is required to have by law.

Investigation shows that the policy takes care of the damage caused by the insured to the Third Party’s property or vehicle, as well as the Third Party’s medical expenses (if any) in the event of an accident, when the policyholder is at fault.

To this end, it covers accidental damage to the property or vehicle of a Third Party of up to N1million as this form of insurance is expected to reduce dispute on who bears repair costs at the scene of accident between two or more vehicle drivers.

The immediate past chairman,  Nigerian Insurers Association(NIA),  Mr. Ganiyu Musa, enjoined other motorists to procure, at least N5,000 third party motor insurance policy as this guarantee them up to N1million Sum Assured in case of any eventuality to the third party vehicle.

Musa, who is also the group managing director/CEO, Cornerstone Insurance Plc, disclosed that the Replacement cost of damaged vehicles or other assets has actually gone up in recent time, stating that, the cost of replacing some car parts is unimaginable, compared to a paltry sum of N5,000 premium.

On his part, the executive secretary/CEO, Nigerian Council of Registered Insurance Brokers(NCRIB), Mr. Tope Adaramola, acknowledged that insurance companies as well as brokers still need to do more to increase awareness of, especially, third party motor insurance, stating that, his association through, its six area committees, have been doing a lot in this regards, although, it could be better.

He charged the motoring public to insure their vehicles through insurance brokers, who, apart from enlightening them at the point of signing insurance contract, will also assist them to retrieve their claims in the insuring firms with ease.

He said the ultimate of insurance is peace of mind, adding that,”it often baffles me when I see two enlightened persons fighting themselves on the roads during a crash, when what they could have done is to exchange their respective third party motor insurance to get their cars fixed. Third party covers repair is to the tune of N1 million when in actual sense, you paid N5,000 premium.”

Insurance companies as risk buyer, he said, will always return back the insured to the financial position he was, prior to the occurrence of the insurable risks, urging people to utilise the tool of insurance to replace their assets.

The Federal Roads Safety Corps(FRSC) Act demands that any automobile on Nigerian roads must have at least third party motor insurance policy or comprehensive insurance coverage which goes for between 5 and 10 per cent of the value of a vehicle.

Third Party Vehicle Insurance comes at a fixed price of N5, 000 for privately used saloons and SUVs, while commercially used vehicles are charged N7, 500. But of recent, N5,000 has been the flat rates for all automobile.