A valid vehicle insurance is mandatory for driving on Nigerian roads as stated in the Motor Vehicle Act of 1945.
The ‘minimum’ insurance policy required to operate a vehicle on Nigerian roads is the ‘Third Party Liability Insurance’ dubbed by car owners/drivers as “Let My People Go”. This stems from the need to satisfy vehicle inspection officers, policemen and other road regulatory agencies requesting valid documents.
Third Party is the most common and affordable vehicle insurance policy obtained by vehicle owners with prices between the N5000 and N10,000 yearly. Despite its affordability, it’s still a common sight to see people exchange fists and harsh words at scenes of accidents as opposed to documenting the accidents and exchanging documents including contact details with each other.
This can be likened to a homeowner with the key to a house yet chooses to use an axe to chop down the door!
Third Party Insurance in Nigeria
The role of Third Party qIInsurance is to cushion the effect of mishaps on the other person’s life and property. The other person is referred to as the ‘Third Party’. In the event of an accident, the policy is expected to return the vehicle to the state it was before the accident. Third Party Insurance does not return the policy holder to where he was; it rather takes care of the third party in any occasion.
Third Party Insurance policy has a ‘maximum threshold’ of N1m value less excess that can be paid out as claims for a third party.
How then does one make a claim?
Different insurance companies have different procedures put in place for policy holders to make claims when an accident takes place. The following is common to most insurance companies operating in Nigeria.
Take pictures of the accident scene showing damage to third party’s property along with your vehicle showing your number plate. When taking these pictures, endeavour to capture relatable landmarks to give an idea of the location of the accident.
Write a testament of what happened or what led to the accident.
Ask for the vehicle documents of the third party along with identification means of the driver/persons affected.
Notify your insurance company via a phone call and send an email to their dedicated claims channel. You will get an instruction on the next step to take in processing your claims.
Obtain a police report from the nearest police station to the scene of the accident.
Get an estimate of repairs that needs to be carried out on the third party’s vehicle.
The presentation of these documents/interplay of these steps helps you enjoy the benefits of obtaining a Third Party insurance.
It’s noteworthy that the process takes sometime, but it works. Different companies’ response time and process distinguishes a few of them from the pack. In a case where the damage is more than the total sum of cover from the insurance, the insured party will have to provide the difference.
The compensation, however, is that he/she will have the policy cushioning the effect of restoring the third party’s vehicle all by himself/herself. Third Party Insurance works and buying the policy on Pidgeonhole makes it easier for you to process claims, should the need arise.
Pidgeonhole operates an instant e-insurance platform where Third Party policies can be bought for vehicles licensed to operate in Nigeria. Also, Pidgeonhole helps it’s customers in claims processing when the need arises.
This policy can be accessed via www.pidgeonholeng.com/3rd-party-insurance for easy steps.
Don’t be caught driving without an insurance policy. It is too risky and expensive (think about the fines, at least).
