By Rosemary ONUOHA
In Nigeria, it is compulsory to have motor insurance before using a motor vehicle on public roads. However, since most Nigerians buy insurance just to get cleared from law enforcement agents, they choose to go for third party motor insurance which is a lot cheaper than comprehensive policy.


Consequently, they with a preconceived notion that third party policy is just to beat law enforcement agents, not realizing that the policy is actually legal and indemnifies the insured from third party losses.

Unfortunately, the costs of repairing accidented vehicles which ordinarily would have been borne by the insurance company are borne by the insured, the car owner.
Benefits in a third party policy

Third party motor insurance means that if you damage (crash into) someone else’s vehicle, the insurance pays the owner of that vehicle (who is the third party in your third party insurance policy), or more importantly, if you injure someone else with your vehicle, the insurance pays for the medicals.

However, it is noteworthy here to inform that under third party insurance policy you cannot make claims on the vehicle you insured in any event of accident and that is probably why most vehicle owners do comprehensive insurance policy for new vehicles (popularly referred to as ‘brand new’ or ‘tear rubber’vehicles in Nigeria) and they do third party policy for used vehicles (popularly known as ‘tokumbo’ or ‘second hand’ in Nigeria).

If you go for a third party insurance from a registered insurance company, you will be able to save yourself of the cost associated with causing damage to others.
Companies’ third party policy offers

Allianz Nigeria
Allianz Nigeria covers payment for third party property damage up to N1 million.

The company offers fast claim settlement and will settle all motor insurance claims in 24 hours.

According to the company, it will not deduct a kobo nor reduce the value of your car when paying your claims.

You get 15 percent of your premium as cash-back after 24months without claim.

Leadway Assurance
Leadway Assurance third party cover indemnifies for damage to third party vehicles/ properties as well as third party personal injury or death arising as a result of any accident from the use of the insured vehicle.

The policy covers payment for third party property damage up to N1 million.
It also has speedy claims settlement after receipt of signed discharge voucher.


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