To this end, it covers accidental damage to the property or vehicle of a Third Party of up to N1million as this form of insurance is expected to reduce dispute on who bears repair costs in the scene ofHowever, low awareness on the benefits of this form of insurance, has resulted in most motorists repairing the damaged vehicles of the third parties involved in an accident from their pockets, when indeed the policy they carry covers that.
To test the level of awareness on third party motor insurance, LEADERSHIP went round to interview some motorists and most of them were surprised their third party policy can do so much for them, yet, they were not aware of that. I cannot be contacting insurance companies over just the N5,000 issue, because time is of the essence,” he pointed out.
To this end, the commissioner for insurance/CEO, National Insurance Commission, Mr. Sunday Thomas, had, on several occasions, implored insurance industry players to increase awareness and educate Nigerians on, majorly, the six compulsory insurances, which include, third party motor insurance. Musa, who is also the group managing director/CEO, Cornerstone Insurance Plc, enjoined other motorists to procure, at least N5,000 third party motor insurance policy as this guarantee them up to N1million Sum Assured in case of any eventuality to the third party vehicle.
Speaking to LEADERSHIP, the executive secretary/CEO, Nigerian Council of Registered Insurance Brokers, Mr. Tope Adaramola, acknowledged that insurance companies as well as brokers still need to do more to increase awareness of, especially, third party motor insurance, stating that, his association through, its six area committees, have been doing a lot in this regards, although, it could be better.
The Federal Roads Safety Corps Act demands that any automobile on Nigerian roads must have at least third party motor insurance policy or comprehensive insurance coverage which goes for between 5 and 10 per cent of the value of a vehicle. To him,” insurance industry is losing a lot to non-insurance of all these vehicles, despite Motor insurance is even one of the six compulsory ones. Imagine if all these 8.6 million vehicles