WHY YOU NEED MOTOR INSURANCE

However, hundreds of car owners are reportedly 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 coverage 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 insurance coverage as they have 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, has 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 to 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 an accident, fire, or loss.

Interestingly, NEM Insurance Plc, one of the most dependable insurance companies in Nigeria, has continuously thrived by offering seamless motor insurance coverage to its individual and corporate customers, guaranteeing them sufficient protection on identified risks that could result in 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 the daily activities of humans. He added that so is insurance; therefore, all vehicles should be adequately insured to mitigate the risks of damage or loss. He stated that a positive attitude toward insurance should be inculcated by all vehicle owners because no one knows when the unexpected will happen.

‘’The year is just beginning, and many people are already incurring losses to their properties. One of the cases, for instance, is 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 endeavor to include insurance coverage for all our belongings without an exemption for our vehicles.

The 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 covers 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, or 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 an auto tracking device, legal liability arising because of the accident, vandalism, malicious damage, damage due to a 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 customer will have full cover for third-party liabilities and have some benefits for his/her damage, which must be a result of an accident involving a third party. This is a necessary condition for the insured to access the add-on benefit in the coverage. The policy is designed to meet the needs of our growing retail customers, especially those who could not afford the premium rate offering on the full comprehensive or third-party Fire & Theft option.

Policy Variants

• NEM Enhanced Third-Party Private Car: This option covers vehicle use for private purposes only.
• NEM Enhanced Third Party Private Bus: This option covers privately used buses and pick-up by individual or corporate bodies such as companies and schools to transport their staff and students only and not for hire or public purposes. The capacity of the vehicle ranges from 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.

Ready to purchase your motor insurance? Drop me a direct message here or send an email to [email protected]

With Lots of love,

From NEM Insurance