Nigeria has witnessed a magnificent growth in the past two decades. Appreciable levels of urbanization have evolved and the law has evolved with it. Motor insurance is a service designed to protect vehicle owners from multiple risks that may occur. Motor insurance in Nigeria is normally offered in two categories: Comprehensive, Third Party. But, some companies offer a sort of extension called the Third Party Fire & Theft. In Nigeria, it is mandatory to own car insurance before driving your vehicle.
The first kind of insurance, called Comprehensive is sort of a master service because it includes the Third Party Cover and protect against damage. Most of the insurance companies offer cover against accidental collision, fire, explosion, theft and malicious acts, with an option to buy additional protection against riots, damage against floods, liability to passengers and expenses incurred if you happen to damage your vehicle.
The second kind, which is called the Third Party policy protects from death or injury from the use of the unshed car and the obvious damage to a third party´s property. As previously stated, motor insurance in Nigeria tends to include Third Party when you buy the Comprehensive package.
As for the third one, the title practically describes it. But not every company tends to offer it. However, the services offered may vary from one company to another and it is always a good idea to consult multiple options.
The motor insurance business in Nigeria is forecasted to grow 7% in the following three years even when at the moment, the trend among motorists is to remain unlicensed, despite this being mandatory. Companies are charging a reasonable price, even in the eyes of motorists, but they are still not buying it. The reason may be because there are what is called fake insurance paper to avoid being stopped and get searched. These fake insurance papers may cost a bit more than the third party but people tend to think that Insurance companies just do not come through for their clients.
By 2020, there is an estimate of 40 million vehicles to be roaming the streets of Nigeria and the challenges will grow accordingly, and that includes a bigger possibility of accidents occurring. Motor Insurance in Nigeria needs to arise to the challenge and do not underestimate these changes if they want to remain successful and gain the trust of those that are not yet convinced.
The newest trend is the collection of more data to have a better database of motorists in Nigeria. Insurance companies are working alongside Nigerian Corps to create an astounding database of all insured vehicles. This will prove to be a great weapon in the development of Nigeria as a growing city and an economic force and insurance companies will certainly be among the leaders for these modifications.