In Nigeria, there are many people that have the wrong perception about car insurance and its policies so they do not even buy into the idea of having insurance because they think it is unnecessary but this article highlights the steps to getting insurance within Nigeria and why it is important. Like any other insurance cover, auto insurance is used to protect the individual and cover any financial loss which may occur from operating regular motor vehicles such as cars, buses, motorcycles, and special vehicle types like tractors, road rollers and excavators. Also, an auto insurance certificate is a compulsory document for all vehicle owners to have in Nigeria.
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Steps To Getting A Proper Car Insurance Cover In Nigeria
These are steps needed to take when you want to get car insurance in any city in Nigeria. They include;
- Research and Contact Insurance Companies in Nigeria: You will have to do a simple Google search on naicom.gov.ng (that is the website of the regulatory agency for insurance companies in Nigeria, National Insurance Commission-NAICOM), to get a comprehensive list of registered companies that are currently in business.
Currently, those companies include:
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- FBN General Insurance.
- AIICO Insurance Plc.
- Old Mutual Nigeria.
- Cornerstone Insurance.
- Consolidated Hallmark Insurance.
- AXA Mansard Insurance Plc.
- Leadway Assurance Plc.
- Zenith Insurance Plc.
- Choose the Type of Auto Insurance you want: After making your research on the list of insurance companies in Nigeria and you have decided on which company you want to buy a policy from, you will have to contact them by phone or pay a visit to their nearest office. After that, you will need to fill out some forms, which will include the following:
- KYC Form.
- Motor Proposal Form.
- Motor Insurance Physical Inspection Form.
In the form you will most likely be offered the two common types of car policies which are:
- Third Party Auto Insurance: This is compulsory in Nigeria and is the most popular type of cover. Popularly called “Police let me go”, this policy covers death, accidental bodily injury and damage to the property of a third party. An annual premium between N5,000 and N10,000 will be charged on this policy depending on the type of vehicle.
- Comprehensive Auto Insurance: This policy is not compulsory under Nigerian law and will offer full comprehensive vehicle insurance that covers all risks related to owning and driving a vehicle. These risks range from loss or damage to insured vehicles as a result of fire, theft, vandalism, accidental damage, or collision. The coverage also includes legal liability for death, bodily injury or damage to the property of third parties arising from the use of insured vehicles. To buy comprehensive insurance for your vehicle, most insurance companies in Nigeria will charge between 4-5% of the total value of the vehicle for a one-year period. Authorised dealers may also give comprehensive auto insurance cover as an option when buying a vehicle. You will have to be sure there is an established relationship between the dealer and an insurance company. Some insurance companies also offer the vehicle owner a car-tracking device which will range from N2,500,000 and above.
Once you have purchased a policy, the insurance company will issue you a certificate that should contain details about your policy.
You will need to confirm your policy to be sure of its authenticity. This can be done by visiting www.askniid.org and following the instructions laid out.
By entering your vehicle number or an insurance policy, you can check if your policy is genuine or not. If your policy is authentic, your vehicle number, policy number and vehicle type will appear. If it is fake, no information will appear meaning your details are not present in their database.
However, buying third party insurance is the minimum legal requirement, a comprehensive insurance cover is an important investment for any motorist who does not want to be faced with unforeseen expenses for his/her vehicle.
Why Getting A Car Insurance Is Important In Nigeria
These are the reasons why it is important to get car insurance:
- It is a written Law in Nigeria to have motor insurance as stated in the Insurance Act of 2003.
- The insured will have peace of mind knowing that their car is covered by uncertainties.
- It protects the amount of investment you have made on your vehicle.
- It functions as health insurance for your car in the situation of a road accident.
- The insurance will cover vehicle damage from an unplanned event.
- The vehicle owner is protected against liability lawsuits.
- Vehicles could be repaired or replaced after an accident.
- It helps to prevent bankruptcy as a result of an accident.
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