Why Nigerians should take third party insurance serious

The enormous benefits provided by the policy are enough justifications for the Nigerian buying public to show more seriousness towards buying the motor Third Party Insurance cover. For example – the unlimited amount of compensation payable to the defendant of innocent third parties that might be killed following an accident involving an insured vehicle, or the relief from liability claims and damages to the insured having transferred his or her liability risks to insurers by buying the third party insurance cover. In like manner, one portrays being a law abiding citizen as one abstains from committing a criminal breach of the 1945 ACT- the enabling law by buying the Third Party cover.

Above all, the overall objective of the law becomes fulfilled in the interest of innocent third parties by strictly adhering to its compliance and buying the covers.

Why third party is not just to escape law enforcements

The purpose and intention of the Motor Third Insurance Act 1945 is sound, genuine and deep-rooted. It cannot therefore be faulted. Neither can it just be for the satisfaction of the law enforcement requirements. We have got to understand that the law by its provisions imposes strict liability on anyone who by his act, omission, or negligence is found responsible for the death or inflicting bodily injury to innocent third parties.

It is therefore meant to reinforce the advocacy of a functional and resourceful public policy. This is further strengthened by NAICOM the industry Regulator that ensures that insurance operators granting the covers are sound, viable and reputable. NAICOM also ensures that all insurance firms abide by the regulations and guidelines, while their reserves and solvency levels are closely monitored.

Above all, the overall objective of the law becomes fulfilled in the interest of innocent third parties by strictly adhering to its compliance and buying the covers.

To make a claim under a third party cover

Making a claim under a Third Party Insurance Cover entails the following procedure. The incident leading to a claim must be formally notified or reported to the Insurer directly or through the handling Insurance Brokers:

The statement or estimate of loss or damage, a police report, notice of any law suit or litigation including all correspondence exchanged must be submitted to the insurers for processing of the claim.

In the event of accident, the practice is for all the parties involved to exchange particulars of their vehicles including insurance details pending the submission of claims supporting documents by the aggrieved Third Party. The insured would then forward along with the completed claim form to the insurer for processing.

The need to patronise genuine insurance company against roadside touts

The need to patronize genuine insurance firms and not the touts at the vehicle registration centres cannot be over – emphasized, if the laudable ideals underlying the compulsory motor third party insurance under the 1945 Act is to be accomplished.

Needless to say that the issuance of fake Third Party Insurance covers by touts or unauthorized and illegal persons has done a lot of damage to the image of insurance industry and its reputation. This is because Third parties that are supposed to benefit and be protected have often been frustrated as they can hardly make any valid claim with fake policy documents.

The way forward

There is an urgent need to strengthen the on – going education and enlightenment of the general public to desist from patronizing touts and buying the motor third party insurance cover at the point of registering or licensing their vehicles, rather, they should approach registered insurance firms, or insurance brokers to obtain genuine and protective insurance covers.

This will surely compliment the efforts of NAICOM – the Insurance Regulators that has been raiding and prosecuting the touts operating within the states vehicles Registration and Licensing offices throughout the Federation including the NIA’s latest efforts in developing a database (NIID) for all vehicles insured by approved insurers in Nigeria, and that has produced electronic equipment for detecting fake insurance documents.