What is Motor Insurance

An insurance policy that covers your vehicle against financial losses that you may incur due to an accident, damage or theft. In some cases, it covers the vehicle owners, passengers as well as any third party involvement According to the laid down policies of the National Insurance Commission (NAICOM) for vehicle owners in Nigeria, it is mandatory for any vehicle running on Nigerian roads to be covered under an active car insurance policy.

Based on the type of policy and add-ons that you opt for, your car insurance policy may include cover for fire, explosion, accidental collision, theft, riots, damage against flood, personal damages on vehicles, liability to passengers and damages from any other malicious acts. Although each type of insurance policy for vehicles has specified area of coverage, many insurance companies now offer valuable add-ons like return to invoice cover, zero depreciation (especially for high-end vehicles), roadside assistance cover, engine cover, no claim bonus, key and lock replacement cover, tyre damage cover, etc.

In Nigeria, it is mandatory to own car insurance for vehicle owners before such individual is eligible to drive the vehicle around. To get a suitable insurance policy for your vehicle, contact any registered insurance company or get the service of a reliable insurance marketer in Nigeria. Some authorized motor dealers also give the option of obtaining an insurance policy for vehicles during the period of purchase. However, verification should be done to certify the company they have partnered with. To get a list of registered insurance companies in Nigeria, you can visit NAICOM official website at www.naicom.gov.ng for full or more details.

Eligibility

Generally an individual must have:

• Health plan takes care of entire hospitalisation expenses subject to maximum sum insured and terms of the policy
• The plans also cover pre and post hospitalisation expenses
• There is a cashless facility available under which you can avail the best medical care at any of the network hospitals & all the payment related to your treatment will be settled from the insurance company directly
• Reimbursements are given as per the eligibility mentioned and add-ons attached with your type of policy.

Process

Simply proceed to the online platform of your chosen insurance company and look for the “get quote” button. You will be required to fill in basic details of your vehicle. During the process of registration, you may be required by the insurer to bring your car forward for inspection. This is to avoid problems and doubt when you intend to claim.

Car Insurance in Nigeria fall in three major categories:

• The comprehensive insurance policy- Covers loss or damage to the vehicle/motor of the insured, provides indemnity for damages to third party vehicle and properties, and provides cover for consequences resulting from such damages.
• The third party insurance policy- Cover for cases related to injury or death from use or damage to the vehicle of a third party
• The third party fire and theft insurance policy- include the third party cover for damages to your vehicle as a result of fire or theft.

How Motor Insurance Works?

While buying a car insurance, you are required to choose a deductible, which is the amount you are willing to pay, against the losses incurred. This amount determines the annual premium you will pay for your car insurance. Higher the deductible, lower the premiums.
Car insurance is given to you based on various factors like:

• Brand and model of your car
• The Kind of driver you are
• TYour past car insurance history.