A vital component of risk management for both individuals and businesses is motor insurance. The risks associated with driving on busy roads are well-known, and having the appropriate insurance can significantly reduce the likelihood of suffering financial losses and obligations. This piece will examine the importance of motor insurance for both private citizens and corporate entities, highlighting its many benefits.
Motor insurance, also known as vehicle insurance or auto insurance, is a contract between the vehicle owner and the insurance company in which you agree to pay premiums in exchange for protection against financial losses stemming from risks such as accident, fire, malicious damage, flood, riot, strike, and civil commotion and third parties liabilities. With the recent review of motor policy coverage by the National Insurance Commission (NAICOM), the insured can enjoy coverage beyond Nigeria’s border to other Economic Community of West African States (ECOWAS) countries with coverage to third-party liabilities of unlimited cover for death or injuries and property damage to the limit of N3 million.
A recent report by the Federal Road Safety Corps (FRSC) shows that 10,617 Road Traffic Crashes (RTC) occurred nationwide between January 1 and December 31, 2023. Though, compared to 13,656 in 2022, the figure reflects a 22% decline. Still, the rate is high; therefore, individuals or corporate entities should ensure their vehicles are insured against unforeseen circumstances.
Therefore, it is important that when you buy or lease a car, you protect your investment in case of an accident or the vehicle gets stolen, vandalised, or damaged. No doubt, selecting the appropriate motor insurance coverage comes with its challenges, as it involves trying to understand the various coverage options and the details. Whether you are a new motorist or an experienced one, having adequate motor insurance is essential to protect yourself, your vehicle, and others on the road.
Some of the benefits of having a motor insurance policy for individuals and corporate entities are as follows:
Financial Protection – When it comes to accidents, theft, or damage to one’s vehicle, motor insurance offers financial security. When people do not have insurance, they will have to pay high repair bills or buy new cars altogether.
Personal Injury Coverage – In addition to covering vehicle damage, motor insurance frequently covers accidental personal injury. Medical expenditures may mount up quickly, and insurance helps people pay for these bills, ensuring they can get the care they need without going broke.
Business Continuity – For corporate entities, the uninterrupted operation of their automobiles is frequently essential to company business operations. In addition to covering physical damage, auto insurance also covers business disruptions brought on by mishaps or unanticipated circumstances. This guarantees that businesses can quickly restart operations.
Fleet Protection – Businesses that own a fleet of cars mostly depend on auto insurance to safeguard their investments. Comprehensive insurance coverage will guarantee that any damage or loss is minimised, allowing businesses to maintain operational efficiency, whether it is a delivery van, company car, or specialist vehicle.
Peace of Mind – Above all, individuals and business entities find peace of mind knowing that they are protected by a reputable insurance provider like NEM Insurance Plc. People may drive with confidence when they know that unanticipated events are financially controllable, whether they are traveling, running errands, or commuting to work.
NEM Insurance Plc, no doubt, is a leading insurance company with the best motor insurance policy in the country. Ranked by NIA Digest as the Insurance Company with the largest Motor Portfolio in 2021, NEM Insurance Plc has been leading the charge in motor insurance in Nigeria for more than six years. Commenting on this, the Managing Director/CEO, Mr. Andrew Ikekhua, said, “At NEM Insurance Plc, we understand the importance of having motor insurance and the accrued benefits to the policyholders, and that is why we deliberately and continuously educate the public on the need to safe themselves from unnecessary headaches by being NEMSURE.”
“We have over the years maintained steady growth in all our products, and today we can say that NEM Insurance Plc is the insurance company with the largest motor, Oil & Gas and accident business portfolio in the country. We have paid over N70 billion in claims between 2015 and 2023, and our dedication to quality service delivery and customer satisfaction has earned us clients across all the major sectors in the country,” Ikekhua added.
NEM Insurance Plc is today among the top ten companies on the Nigerian Stock Exchange with over 62.65% gain and is also one of the top insurance companies that have given back to investors in past years. The company was nominated among the top six insurance companies, the only general insurance company that made it from Nigeria for continental recognition in 2022 and has also been voted the Most Valuable Insurance Company in West Africa.
These speak to its credibility and dominance in the industry.
Motor insurance provides peace of mind, legal compliance, and financial security, making it essential for both individuals and organisations. When it comes to offering comprehensive and customised motor insurance solutions, NEM Insurance Plc stands out as a trustworthy partner that makes sure its customers are ready for everything that comes down the road. Purchasing auto insurance is not only a responsible financial move, but it is also a responsible way to help make driving safer and more secure for everyone.