By Bisi Bamishe
Yetunde Idris, a senior accountant working with a telecommunication out fit in lbadan, was rushing to her office the morning of the ill-fated day.
She was getting late for a departmental meeting at work. Unfortunately, on getting to Challemge roundabout, she ramed into a commercial taxi vehicle. Amidst shock and confusion, she breathed an air of peace even though the badly damaged vehicle would need to be repaired. She has insurance cover; she purchased her third party insurance policy a month earlier, precisely mid January.
Third-party insurance is a form of liability insurance that covers vehicle owners when someone makes a claim against them for damages. Insurance company will pay another driver who is injured in an accident that you have caused. Another common type of third-party insurance is for property damage. It comes into play if you damage another person’s car or injure someone while you’re driving. But you won’t be covered for your own injuries or any damage to your car if an accident is your fault. You’ll need to foot the bill for this yourself.
This is the type of insurance policy she has. So, she quickly called her insurance broker, informed him about the accident and was told to make formal complaint in order to get indemnity. Though her own car would not be repaired according to Third Party lnsurance Act, the vehicle she damaged would be put back to the postion it was before the accident by her insurer. Knowing this, she took pictures of the vehicles and assured the taxi driver that his vehicle would be repaired. After, they exchanged telephone numbers for further action and she continued her journey to rhe office.
Few days later, she commenced the process for claim settlement with the assistance of her insurance broker. Today, she is happy that the accidented car has been repaired by her insurance company.
Even though she was bitter when she had to pay the sum of N15,000 for Third Party insurance cover in January instead of erstwhile N5,000, she was relieved that the cost of repairs running to N1.9m due to prevailing daily increase in prices of goods and services was taken off her shoulders. What was left for her to repair was her car, by herself, which she postponed till later when she has the money.
This story is now becoming an occurrence in Nigeria, where motor owners of accidented vehicles get compensated big for the small money they pay for Third Party insurance cover. Today, motor owners have cause to smile now that National Insurance Commission (NAICOM) has introduced new motor insurance rates and motorists get compensated with a big amount of money for small premium paid.
Commenting on this, ldris said, “l am happy. It is good that there is increase in the cost of motor insurance cover. Though l was among those that kicked against the new premium rate when it commenced in January, now l have seen the gains. If you look at what is going on in Nigeria now, every thing has gone up. My insurance saved me.”
She called on car owners to ensure that their vehicles are insured so that they will enjoy the benefits of motor insurance. As for the government and stakeholders of insurance, she advised them to come together lamenting that, “lnsurance is not well rooted in Nigeria. There is need for public engagement and enlightenment to make the people know about its importance”.
The regulatory body of the industry, NAICOM announced last December that new rates would commence from January 1st, 2023. For example, under the new rate Third Party Property Damage (TPPD) which is the limit of claims an insured vehicle can enjoy on a policy for private vehicle is now N3 million, up from N1million.
The new rates are as follows –
NEW TTPD NEW
. LIMIT PREMIUM
1. VEHICLE TYPE – Private
Private Motor N3m N15,000
Own Goods N5m N20,000
Staff Bus N3m N20,000
2. VEHICLE TYPE-Commercial
Trucks / N5m N100,000
Special Types N3m N20,000
Tricycle N2m N5,000
Motorcycle N1m N3,000
Third-party motor insurance is the most basic level of vehicle insurance motor owners must get and the legal minimum you need to drive on Nigerian roads. It’s illegal to drive on the road without at least third-party motor insurance.
Third party insurance covers:-
1. Damage to someone else’s car in a road accident
2. Damage to another person’s property – for example, if you crash your car into a neighbour’s wall
3. Injury to a passenger or driver of another car
4. Injury to a passenger in your car.
Third-party insurance do not cover:-
1. Damage to your own vehicle (if the accident was your fault)
2. Repair or replacement costs if your car is stolen, broken into or damaged by fire
3. Medical costs if you’re injured, such as physiotherapy.