If the fuel tanker that exploded on Otedola Bridge at Lagos-Ibadan Expressway last week, which led to death of 12 people and burning of other 54 vehicles, had at least third party motor insurance, the owners of the tanker would have made claims from insurance to compensate affected victims. And if the tanker also had a comprehensive cover, insurance would also have bore the cost of its replacement.
Besides, if any of the other affected 54 vehicles have comprehensive insurance, they can also make claims from their different insurance companies for replacement of their vehicles, if they approach them.
Tope Smart, chairman, Nigerian Insurers Association (NIA), made this clarification during a telephone conversation with BusinessDay, where he said, “This is where you know the value of insurance because they will compensate you if you have ensured adequately.”
Smart, who is also the managing director/CEO, NEM Insurance plc, said the insurance industry had the capacity to meet claims obligation once it had taken the risk, urging the public to hand over their risks to insurance companies who were professionals in risk management.
Given clarifications on policy coverage, he said “motor third party insurance has limited cover of up to N1 million for property damage, and no limit to life.”
He said if the exploded tanker had third party cover, “it is guaranteed up to N1 million for third party property damage, except if the vehicle has an extended limit.” That means it has extended its third-party cover with payment of additional premiums. In that case, insurers can pay the extended limit. It could be N5 million; it could N10 million, depending on what is in the contract.
“In case of life, there is no limit. So, families of the victims could sue the owners of the tanker and the owner will fall back to his insurers to get compensation for the victims”.
“Now, for the other vehicles, their owners will be compensated for the damaged vehicles if they had comprehensive cover. But if it is just third party, they will not get compensation,” Smart said.
Motor third party cover is a compulsory insurance for all vehicles plying Nigerian roads, and is sold for N5,000 for cars and N7,000 for commercial vehicles and has a liability cover of up to N1 million for third party damages, and no limit to life in the event of death of third party.
This means that in the event of an accident occurring, the policy holder has a third party property damage limit up to N1 million and no limit to life in case of death or permanent disability.
To ensure that you get genuine insurance policy, insurers advise that you buy from any of the NAICOM licensed insurance companies.
Meanwhile, the NIA has put in place a technology platform called the Nigerian Insurance Industry Database (NIID) that captures all insured vehicles in Nigeria, and help to check fake insurance certificates.
To verify the authenticity of your cover, the NIA advises that you simply apply this code into your GSM handset, and in seconds the status of your insurance is displayed on your screen. (SMS: policy number*plate number to 33125). This is compliant with all networks.
Davis Iyasere, corporate affairs manager, NIA, had said, “If the resultant message says, “not available on NIID database, then know that what you are parading as insurance is fake. But if it is there, it tells you immediately the name in which your vehicle is registered; the make and model of the vehicle; the colour of the vehicle; name of the insurance company and date of expiration of the policy.
“Verifying the authenticity of your vehicle insurance policy on the NIID gives you peace of mind and assurance that your claim will be paid.”
The Lagos State government had revealed that the death toll from the last Thursday’s tanker explosion had increased to 12 with the death of another survivor. During the unfortunate incident last Thursday, at least nine people died on the spot, while four survivors with different degrees of injury, were immediately rushed to the hospital for treatment. However, two victims later died weekend, before the latest casualty.
Jide Idris, commissioner for health, who disclosed the latest death toll during a press briefing in Alausa, Ikeja, said the death toll increased due to the level of burns suffered by the victims, saying, some of them sustained 90 percent degree of burns during the explosions.
