It is compulsory by law in Nigeria to be equipped with motor insurance before actually publicly using a car on public roads. However, one common problem seen is that in Nigeria, people purchase insurance in order to be safe from law enforcement officials on the roads. One good option in this regard is taking advantage of 3rd party insurance online as this is a whole lot cheaper as compared to a comprehensive policy.
How 3rd Party Insurance Online Works
Let’s take for example the motor policy under the 3rd party insurance online coverage. The first party refers to you; the second party refers to the insurance company, and the third party is everybody else. This means that if you crash into the vehicle of somebody else, the insurance company will pay the owner of the vehicle. This also applies if you happen to injure another person with your vehicle, as this is also covered by the insurance. Liability coverage is also part of the basic policy, covering you from claims that are made against you.
Under 3rd party insurance online coverage, you cannot simply claim for the vehicle that you are personally driving regardless whether it is brand new or not. That needs a comprehensive coverage. At the same time, if you are driving another person’s car, it does not have to pay for the repair of the car that you are driving, but the car that you hit.
For instance, if you are the one responsible for the crash, you are generally responsible for the payment of repair for another vehicle, as well as in covering the medical cost of the injured driver. 3rd party insurance online can protect you from these claims, as it can cover both the cost of the damage, as well as the sustained injuries with which you were initially at fault.
Things to Note
At this point, it is important to take note that the money that you use for paying the damages stems from the premiums. This means that if the premium has not yet been paid, no compensation will be made available in case of an accident.
If you decide to take advantage of a 3rd party insurance online, make sure that you are dealing with a registered insurance company. This will protect you from the cost that is often connected with causing harm on others. There are some limitations to this policy as well, therefore, make sure that you are aware of such limitations before subscribing. This often comes true in the amount that the insurance company is willing to cover.