What motor third party insurance means for you

Motor third-party insurance is a crucial safeguard for vehicle owners and drivers, offering financial protection in the event of an accident. While it may not cover damage to your own vehicle, it is a legal requirement for plying on the road, which helps protect you against liability for injuries or damage caused to others.

The benefits of Motor Third Party cover cannot be over emphasised, particularly when you hear testimonies of those who benefited from the policy after an accident.

For Damilola, a 39-year old civil servant with Lagos State Ministry, it is better experienced than imagined, because he never believed that insurance pays claim, let alone the motor third party policy.

Back in February 2023, Damilola renewed his vehicle insurance policy when it expired at the current rate of N15, 000.00 for cars.

In June, he had closed from work and on his way home lost touch with his brake and ran into a Mitsubishi SUV 2018 model from behind, breaking one rear-light and one fog-light, which an auto repay company valued at N650,000.00.

Damilola, realising that he had taken out a genuine motor third party insurance of N15, 000.00, having a claims limit of up to N3 million contacted his insurance company, and the insurer took up the matter followed up with the owner of the damaged vehicle and fixed it to the satisfaction of Damilola and the victim.

Damilola, who never believed in the genuineness of insurance, has become the one testifying and taking the message of insurance to colleagues, friends and families that truly insurance works.

The Federal Government, through the National Insurance Commission (NAICOM) in December 2022 reviewed the premium rate for motor insurance in Nigeria that became effective 1st January 2023.

In the reviewed rate, private vehicles that were paying N5, 000 premium for N1 million Third Party Property Damage (TPPD) limit, now pays N15, 000 premium for N3 million TPPD, while owner good vehicles are to pay N20, 000 premium for N5 million claims limit, and staff busses are to pay N20, 000 premium for N3 million claims limit.

For commercial trucks and general cartage, they are to pay N100, 000 premium for N5 million TPPD limit; Tricycles N5, 000 for N2 million TPPD limit, and Motor Cycles N3, 000 for N1 million TPPD limit.

While for comprehensive motor insurance policy, premium rate shall not be less than 5 percent of the sum insured after all rebates and discount.

Beyond this, the review also offer motorists plying the ECOWAS Region the benefits of third party liability protection under the ECOWAS Brown Card Scheme.

The card provides motorist complete guarantee for a prompt, fair and immediate compensation for any accident that may occur outside his habitual residence country.

According to NAICOM, the ECOWAS Brown card used by motorists plying within West Africa sub-region had been captured in the revised premium for third party motor insurance.

This means registered Nigerian vehicles with third-party motor insurance automatically purchased the ECOWAS brown card and is covered when in and around any of the West African countries.

While motorist from other West African countries into Nigeria will get third party compensation in event of accident with a Nigerian vehicle.

Policyholders who had taken out the insurance policy can check the genuineness of their motor insurance policy by visiting www.askniid.org or by sending Short Messaging Service (SMS) to the USSD code *565*11# on any mobile phone with or without internet access.

Using this platform is very easy and you can authenticate your policy in a few short steps: From any web enabled device. Your browser should take you to a page on NIID portal where you can verify your insurance policy.