Motor vehicle insurance policy as a matter of importance is a necessary primary financial protection tool that motor vehicle owners should have in their possession. Different countries have their vehicle insurance policies. In Nigeria the Federal government made a strict regulations on motor vehicle insurance through third party insurance Act of 1945
Types Of Motor Vehicle Insurance Policy
The Act Policy
This type of policy gives the insured the minimum insurance required by road traffic regulations. Meaning that all vehicles must be insured. It covers the insured’s legal liability for death/disability of third-party loss or damage to third-party property.
The Third Party Only Policy
This type of policy does not cover ones vehicle itself but covers ones liability to third party property and injury or death to such third party. Also, this policy does not cover stolen vehicles or consequential losses to the insured while the vehicle is being repaid
The Third Party Fire And Theft Policy
This policy insures vehicle against loss or damage cause by fire or theft. Also very effective to cover the insured’s legal liability to third parties in respect of any damage to the property of such third party and for any injury or death to third party arising from the use of motor vehicle. If insured is driving in his car he becomes the third party and can be indemnified.
The comprehensive policy pays indemnity in respect of the insured his driver’s legal liability, solicitors representations for death of or bodily injury to, or damage caused to the property of third party arising from the use of the insured vehicle of any other expenses authorized by the insurer in writing arising during judicial proceedings of the case as well as medical occupants and the damage to the insurer’s vehicle
Condition Of Compensation Refusal
- If the insurer is not notified within 30 days of the accident by the insured
- If the insured commits suicide or inflicted injury on himself
- On event of natural death
- If the insured is not mentally sound at the time of and after policy effectiveness
- Not fulfilling the contractual obligations by non-payment of premium
- If death occure after 12 calendar month of injury
- When disability occurs due to drunckness
- Consequential loss
- Repair of vehicle without insurer’s consent
- Non disclosure of material facts like using of eye glasses
- Accident due to mechanical fault not effected by vehicle user.
- War or strikes
- Unauthorized driver by the insured
Motor vehicle insurance has geographical limit. But can be covered under third party motor vehicle insurance if the insured obtained an extension called ECOWAS Brown card for ECOWAS countries.