This type of insurance is made compulsory by statute. In the light of this, any vehicle operators should have one form of motor insurance to operate, such vehicle on Nigerian roads. One form of insurance as mentioned hereunder must be obtained from an approved and a registered insurance company in Nigeria through licensed insurance broker.
Forms of Motor Insurance:
- Comprehensive motor insurance provides cover for accidental damage to the vehicle, theft or loss of the vehicle. It also provides cover against third party property damage as well as death or bodily injury to the third party.
- Third Party Fire & Theft provides cover for except accidental damage as stated above – third party death, bodily injury or/and damage to property. Theft/loss of the vehicle is also covered by this form of insurance.
- Third Party only provides indemnification for accidental damage cause to the property of the third party. It will also provide indemnity for death of and bodily injury to third party.