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.
To test the level of awareness on third party motor insurance, our correspondents went round to interview some motorists who were surprised that their third party policy can do so much for them, yet they were not aware of that. On his part, Femi Samuel said, “There was an issue like that when I had an accident, and when I went back to the insurance company, they did not pay me anything. I believe the insurance is for all the big cars and not commercial buses like our own. I believe they would not attend to us.”
He noted that proper awareness on the features and importance of these insurance policies will deepen insurance penetration and drive the revenue of the industry up. He promised that insurance operators will always pay genuine claims, just as the industry has improved over time in the area of claims payment.
He stated that his association, through its six area committees, has been doing a lot in this regards, though it could be better. The Federal Roads Safety Corps 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.
He said though some of the uninsured vehicles have fake insurance papers, majority of them, especially transporters, do not have appropriate insurance coverage.