Involved in an Accident? Here is How Third Party Vehicle Insurance Covers You
Driving is an unpredictable activity. One minute you are cruising, enjoying the luxury of your car and the next moment, a little distraction causes you to crash into another vehicle. Sometimes, you are lucky to escape with only a scratch on the bumper of the other vehicle. In more extreme cases, such accidents could result in more horrific damages that may cause injury to the driver or passengers, or even death. What if they had vehicle insurance?
How do you deal with the reality of such incidents? It would be worse worse, if it is a period when you are low on cash and you are faced with the cost of repairing the damaged vehicle. It even becomes more unbearable if you have to foot the hospital bill for the injuries caused. Well, should the accident result in death, the demand on you goes beyond the ordinary, mentally and financially.
This is when having a Third Party Vehicle Insurance becomes a lifesaver.
Why should you have Third Party Vehicle Insurance?
In Nigeria, it is compulsory that every driver obtains a Third Party Vehicle Insurance to legally drive a vehicle on the road. This is the minimum insurance requirement for every motorist in Nigeria. The intent is to ensure that other road users are assured of a reasonable compensation (indemnity) on damages to vehicle or injuries caused in the event of accident.
In other words, should your action on the road result in an accident, the victim (third party) – who could be the driver or passenger(s) – will receive compensation for injuries as well as damage to the vehicle. However, these benefits do not include compensation for your own damaged vehicle or personal injuries suffered during the accident.
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It is crucial to note that driving without any form of auto-insurance cover in Nigeria is against the law and will attract a penalty.
What exactly are the benefits?
So, how do you benefit from obtaining Third Party Vehicle Insurance when it is the victim of the accident that gets compensated? Well, besides being on the right side of the law, a Third Party Vehicle Insurance protects you from unplanned financial exposures to legal liabilities resulting from being sued by the victims of an accident you caused.
On the other hand, the Leadway Assurance Third Party Vehicle policy provides a maximum cover of up to 1 million Naira for the victim’s damaged vehicle.
Additionally, Leadway also provides an unlimited cover for bodily injury or death of a third party.
How do I get Third Party Vehicle Insurance?
According to the Director-General, Nigerian Insurers Association, Mr. Sunday Thomas, [i]“Only about 4.3 million of the vehicles plying Nigerian roads have valid insurance certificates.” Quoting a research report, he revealed that “instead of procuring valid certificates that would provide insurance cover and compensation for road users in times of accident, a large number of the motorists buy fake insurance certificates from fraudsters in unauthorized areas.”
Apart from ultra-low cost, one of the reasons motorists patronise these unauthorised agents is due to limited access to agents of registered insurance companies. But Leadway Assurance is committed to changing that. This is the key objective for its partnership with Total Service Station. By leveraging on the wide network of one of Nigeria’s leading downstream petroleum marketers, Leadway has taken a big step to bringing Third Party Vehicle Insurance closer to motorists.
This is in addition to its partnership with Capricorn Digital to make this product available in residential neighbourhoods through BaxiBox point of sales platform used by owners of small street kiosks.
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Crucially, a motorist may opt for a comprehensive insurance policy that also provides compensation for him and his vehicle in the event of an accident. It is even more financially wise to take a policy that unites other risk management, including a motor insurance, into a single premium basket.
Known as the L-HAPPy, (Leadway Household, Automobile, Personal accident Policy), this policy combines your comprehensive motor insurance with property – rented or owned – occupier liability and personal accident cover into a single product. With L-HAPPy, your vehicle is covered against theft, accidental damages, third party liability, injuries or death arising from motor accidents; your properties are also covered from damages from fire, theft and natural disaster such as flood etc. The benefits also include legal liabilities for injuries or death of a visitor at your premises. Nothing beats this kind of coverage in an economic recession.