Coronation Insurance Plc hosted a webinar to explain the importance of third-party motor insurance. The session featured key industry experts, including Uko O. Uko, CRC Unit Commander at the Federal Road Safety Corps (FRSC), Charles Oghiabu, Head of Retail Claims at Coronation Insurance Plc, Mary-Anne Momoh-Ige, Government Relations Specialist at inDrive Africa, and Felix Boateng, Head of Underwriting at Coronation Insurance Ghana.
The keynote address highlighted the legal requirements for third-party motor insurance. Section 68 of the Insurance Act (2003) makes it a criminal offence to drive without valid third-party motor insurance. “Many Nigerians don’t realize that driving without third-party insurance is a serious crime,” the speaker said. “The law is clear—violators face up to one year in prison, a fine of N250,000, or both.” The speaker stressed that third-party motor insurance is necessary for financial protection and compliance with the law.
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Speakers discussed the unpredictable nature of road accidents. Mary-Anne Momoh-Ige provided real-life examples, illustrating how minor accidents can be settled quickly, but severe incidents result in financial and legal challenges. “One moment you’re driving smoothly; the next, you’re faced with medical bills and legal trouble,” she stated. The session emphasised third-party insurance as a financial safety measure against such uncertainties.
With the Nigeria Police Force set to intensify enforcement of third-party insurance compliance from 1 February 2025, participants were advised on the importance of having valid coverage. Authorities will conduct routine checks, and drivers without valid insurance will face immediate penalties. “Ignorance is not an excuse,” the keynote speaker warned. “Vehicles will be impounded, fines will be issued, and in some cases, legal action may follow.”
The discussion outlined what third-party motor insurance covers, including compensation for injuries, fatalities, and damage to third-party property. Exclusions include accidents involving driving under the influence, invalid licenses, underage drivers, or vehicles used for illegal activities. The session underscored the need for responsible driving alongside valid insurance.
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Participants were advised to report accidents immediately and obtain a First Information Report (FIR) from the nearest police station in cases involving injuries or significant damage. To facilitate claims processing, affected parties must gather accident descriptions, policy details, medical and damage reports, witness statements, and photographic evidence. “A surveyor may be assigned to assess the damage before claims are finalised,” Charles Oghiabu noted. Payouts are made directly to the affected third party or their service provider.
If another driver is at fault, victims can file a claim against the offender’s third-party insurance to cover repair costs, medical expenses, and compensation for loss of use. Ensuring all vehicles on the road are properly insured simplifies the claims process.
The affordability of third-party motor insurance was a key discussion point. With a premium of N15,000 per year, Coronation Insurance provides third-party property damage coverage of up to N3 million and compensation for injuries or fatalities. Olamide Olajolo, Managing Director of Coronation Insurance Plc, highlighted the cost-effectiveness of this coverage. “For less than the cost of a minor car repair, you get legal compliance and financial security,” he stated.
The webinar concluded with a reminder that insurance is more than a regulatory requirement. “Insurance is not just about paying premiums; it’s about safeguarding your finances from unexpected disruptions,” a speaker emphasised. Securing third-party motor insurance allows vehicle owners to drive with confidence, knowing they are protected against unforeseen risks.
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