Motor insurance coverage has over the years become a mandatory requirement for all vehicle owners.
It mitigates against the effects of unfriendly occurrence that may affect properties such as vehicles which of course play significant roles in facilitating personal or business activities on a day-to-day basis.
It is, therefore, expedient that individuals and corporate bodies procure vehicle insurance coverage for all type of vehicles within their lawful possession.
This will provide protection against loss or damage either to owned vehicle or to third party property. And that includes bodily injury and death to third parties occasioned by accident.
Motor Insurance is one of the most common of all classes of insurance. In addition, it covers Third Party Motor Insurance Policy, Third Party, Fire and Theft Policy and Comprehensive Motor Insurance Policy, serving as a minimum legal requirement for all vehicle owners in the country.
However, hundreds of car owners are reported to be shying away from obtaining insurance coverage. This may be due to factors such as negative attitudes and orientation, poor financial power or standing, and current economic realities, among other factors. The low adoption of motor insurance cover by many Nigerians has become a matter of concern to stakeholders in the insurance sector and concerned security agencies.
Sadly, vehicle owners who fail to insure their vehicles often regret not obtaining an insurance cover as they had to battle with the consequences of paying hugely and incurring debt for a long period for repairs and footing other bills.
To this end, the Federal Road Safety Corps (FRSC) in the discharge of its lawful duties have continued to urge all vehicle owners, through its public enlightenment campaigns, to obtain insurance coverage for their vehicles. This will guarantee peace of mind in the event of any eventuality on the road or at any place or time while those found wanting face the due penalties.
According to the Federal Roads Safety Corps, vehicles on Nigerian roads are mandated by law to have at least a third-party motor insurance cover or comprehensive insurance policy of 10% of the vehicle’s value to stand a chance for compensation in the event of accident, fire and loss.
Interestingly, NEM Insurance Plc, one of the most dependable insurance companies in Nigeria has continuously thrive by offering seamless motor insurance coverage to its individual and corporate customers, guaranteeing them sufficient protection on identified risk on event that could result to loss or damage to their insured vehicles.
The Group Managing Director and Chief Executive Officer of NEM Insurance Plc, Mr. Andrew Ikekhua, re-echoed that vehicle usage has become central to daily activities of humans, so also is insurance, he added. Therefore, all vehicles should be adequately insured to mitigate the risks of damage or loss. He stated that positive attitude to insurance should be inculcated by all vehicle owners because no one knows when the unexpected would happen.
‘’The year is just beginning, and many people are already incurring losses to their properties, some of the cases for instance are the inferno in Los Angeles, California which ravaged properties worth billions of Dollars including vehicles, another is the tanker explosion in Agbor, Delta State where lives and properties were also lost. These unfortunate incidents were never anticipated but that is the reality of life that we live in and it could happen to anyone, so, preparation is key.’’ We must endeavour to include insurance coverage to all our belongings without exemption to our vehicles.
NEM Insurance motor policy is designed to protect the insured from loss of or damage to his vehicle, and damage to third-party property including bodily injury and death to third parties. NEM Insurance provides cover on a wide range of automobiles for various categories of uses. These include private cars, commercial vehicles (buses and hire cars), commercial vehicles (own goods), commercial vehicles (general cartage), and motorcycles.
Vehicle Insurance Coverage by NEM Insurance
Third-Party Motor Insurance Policy:
This is the minimum insurance that owners of motor vehicles plying Nigerian roads are required to have. The policy covers liability against damage to third-party property to the sum of One Million Naira (N1 million) and for death or bodily injury to a third party arising from the use of the vehicle.
Comprehensive Motor Insurance Policy:
The Comprehensive Motor Insurance Policy covers the loss or damage to insured vehicles because of fire, theft, vandalism, accidental damage or collision, third-party liabilities due to death, bodily injury, or damage to the property of third parties. Other additional benefits provided by NEM Insurance include but are not limited to loss of use occasioned by accident, installation of auto tracking device, legal liability arising because of accident, vandalism, malicious damage, damage due to riot, and civil commotion.
Enhanced Third-Party Motor Insurance Policy
NEM Enhanced Third Party Motor Policy is an initiative of NEM Insurance Plc. designed to provide cover on third-party liability with limited benefit on own damage for the insured. The customers will have full cover for third-party liabilities and have some benefits for his/her own damage which must be a result of an accident involving a third party. This is a necessary condition for the insured to have access to the add-on benefit in the cover.
The policy is designed to meet the needs of our growing retail customers, especially who could not afford the premium rate offering on full comprehensive or Third Party, Fire & Theft option.
Policy Variants
NEM Enhanced Third Party Private Car – This option provides cover for vehicle use for private purposes only.
NEM Enhanced Third Party Private Bus – This option provides cover for privately used buses and pick-up by individual or corporate bodies such as companies and schools for the purpose of transporting their staff and students only and not for hire or public purposes. The capacity of the vehicle ranges between small passengers – which are constructed or adapted to carry up to 18 passengers.
NEM Enhanced Third Party Mini goods carrying vehicle – This plan provides cover for goods carrying vehicles privately owned by an individual or corporate body for private use in transporting goods related to the insured business or profession only and not for commercial use or hirers. The cover does not extend to heavy truck vehicles.
It is now a clarion call to vehicle owners to purchase insurance coverage and protect their vehicles against any eventualities.
