DON'T BE CONFUSED LIKE TUNDE

Often, we see people carry burdens that isn’t theirs. Some pay for stuffs that should have been the responsibility of another. Do you know that the law doesn’t require you to pay for damages to another man’s vehicle or property while driving yours? What value does a third-party insurance offer you?

This and many more are questions Mr Tunde was faced with some months ago. Tunde, like most Nigerians, purchased a third-party insurance on his vehicle all in a bid to escape the harassment from police and road traffic officials.

Tunde is an upwardly mobile young professional in his thirties. He works in Victoria Island, hence must grapple with the habitual daily traffic in that part of the State. On his way to work this fateful day, in his car, he tried reversing but mistakenly hit a brand-new car. Unfortunately for him, the damaged car is a new one and owned by an oil & gas servicing firm.

Tunde came out of his car confused and bewildered as he never expected this accident to happen. But sometimes accidents happen without any prior notice. The company impounded his car and demanded he repairs their damaged car. This again increased Tunde’s anxiety and frustration as his account was already in red.

Reluctantly, he decided to speak with a friend to borrow some funds for this repair. While his friend questioned him on why he needed that amount, he narrated the accident to him. His friend, Bode, who works with an insurance firm had earlier helped him with his car insurance. Bode told Tunde his insurance will cover the damage on the third-party vehicle up to 1 million naira.

Tunde didn’t believe what he just heard. He had always assumed third party insurance is to allow one drive without police harassment. He thought this was one of Bode’s April fool jokes but realized the month was still February. The relief experienced by this news was surreal. Suddenly he need not borrow anymore or worry about the repair of the third-party vehicle.

To cut this story short, Tunde’s insurance company repaired the third-party car and Tunde’s car was released to him, at no cost. Tunde was so grateful to Bode for this enlightenment and for saving him the hassles and worries. He has since scaled up his insurance from third party to comprehensive cover.

The moral of this short story is to highlight the values that a third-party insurance cover provides. Click http://ow.ly/4nrZiT to see the benefits.

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ARE YOU INSURED? FIND OUT IF YOUR INSURANCE IS ADEQUATE

The Nigerian law requires that every vehicle on the road must have the minimum of a third party auto insurance cover. This was enacted to solve the conflict that may arise when an accident occurs. This means that insurance will always step in if either or both parties involved in an accident have the minimum insurance.

What is auto insurance? Auto insurance is the insurance policy designed for vehicles. There are three (3) major forms of auto insurance. 

1. Third-party 

2. Third-party, fire and theft

3. Comprehensive 

As stated above the least auto insurance mandated by law is the third-party auto insurance. 

What is third-party insurance?

Third-party insurance is the policy designed to protect other people, vehicles and property in the event of an accident that was deemed to the fault of the insured.

Let say you drive into the rear of someone's car, causing damage to the bumper and injuring the driver. Third-party insurance would cover the cost of the other person's car and medical expenses. However, your own car damages will not be covered by the insurance.

Third-party, fire and theft insurance would also cover the same cost as third-party insurance with additional coverage as listed below;

ü  replacing your car if it's stolen

ü  fire damage to car

ü  damage because of an attempted theft e.g. broken window or stolen radio. 

Comprehensive insurance is the policy that covers the cost of your car from accidental damages and other damages outside an accident like theft, fire damages. The policy also protects the insured against damages to other people, vehicles and property if the accident is deemed your fault. This policy can also accommodate additional clauses to adequately protect the insured against unusual risks at additional cost. 

The policy also applies when fault can't be proven, e.g. if you return to your car after shopping to find that someone has hit you and driven off. The comprehensive auto insurance will compensate for the damage to your car.

How do you ensure your insurance is adequate? 

Drivers who bought any of the third-party auto insurance plan run the risk of being under-insured, that means the cover on their auto insurance policy are not adequate to cover the damages incurred from the unexpected accident.

That is because policies like third-party insurance and third-party, fire and theft insurance have limited coverage/compensation to the insured. 

However, with a comprehensive auto insurance cover you are completely and adequately protected from any extra liability or cost of damages you may have to bear either to your own car or to the third-party car or their properties.

Hence, we advise you to consider the complete protection of a comprehensive auto insurance cover and not just obey the law with the purchase of third party auto insurance cover. 

For more information, contact us on our twitter handle - @con_hallmark

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