There has been a lot of misguided information about the role of insurance companies and Vehicle Inspection Officers (VIOs) in Nigeria.
This article aims to demystify the role of insurance companies and vehicle inspection officers, in the purchase of third-party insurance policies. To clarify their importance, and address common misconceptions surrounding them.
Why Third-Party Motor Insurance is Mandatory in Nigeria
Third-party motor insurance policy is legally mandatory in Nigeria. It provides coverage for liabilities related to bodily injury, death, and damage to third-party property, with bodily injury coverage capped at 1 million Naira, while death coverage is unlimited. The compulsory nature of this insurance underscores its role in protecting lives and property.
The Role of Insurance Companies and VIO
Many vehicle owners inadvertently believe that the VIO issues third-party insurance policies. In reality, VIOs issue vehicle licenses and roadworthiness certificates, while insurance companies handle the insurance policies.
Often, insurance agents are either present at VIO offices to sell third-party insurance policies to vehicle owners, or designated VIO personnel who act as vendors for the issuing insurance companies play the same role as insurance agents. But it is pertinent to understand that the VIO itself does not issue insurance policies, as the VIO is NOT an insurance-regulated entity, but a unit under the Directorate of Road Traffic Services.
The Verification Process
When you obtain a third-party insurance policy, it’s essential to verify its authenticity. This can be done through the Nigerian Insurance Industry Database (NIID), using the web link https://www.askniid.org.
Ensuring that your policy is genuine and will provide the necessary coverage in the event of an accident is important to your financial security and peace of mind.
A valid third-party insurance policy not only complies with legal requirements but also protects you from unexpected liabilities, especially to a third-party road user. Always take the extra step to verify your insurance policy through the NIID portal to avoid complications and ensure you have the support you need when it matters most.
Handling Claims and Accidents
In the event of an accident, the first step is to contact your insurance company. They will guide you through the process, which may include sending a loss adjuster to assess the damage.
It is also advisable to report the accident to the nearest Police Station or VIO office, as their report may be required if the case lingers, and eventually leads to litigation.
Combating Fake Insurance Policies
Despite efforts to curb the prevalence of fake insurance policies, some still circulate. Vehicle owners are encouraged to obtain their insurance policies directly from reputable insurance companies rather than relying on intermediaries who may not provide genuine policies.
Ensuring you have a genuine third-party motor insurance policy is not just a legal requirement but a crucial step in protecting yourself and others on the road.
By understanding the roles of VIOs and insurance companies, verifying your policy, and knowing the correct procedures following an accident, you can navigate the complexities of motor insurance in Nigeria with confidence.
At Transparent Protection Ltd./Gte, we strive to educate and assist vehicle owners in Nigeria. Whether you need help to understand your insurance policy or to facilitate a claim, our goal is to ensure you are well informed and adequately protected.
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Have questions about claim settlements or need assistance with your insurance policy? Our team is here to help! Reach out to us via email at info@tplng.com or give us a call at 0905-776-6182. We’re committed to ensuring genuine claim settlements and supporting our valued members.
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