Third Party Motor Insurance Cover/ All You Need to Know
What is third-party motor insurance?
The requires every owner of a motor vehicle to insure the vehicle against liability in the event of death, bodily injury, or damage to property of a third party emanating from the use of a such vehicle.
Third-party motor insurance indemnifies against death, bodily injury, and property damage of a third party arising from the use of the insured property. However, third-party motor insurance provides cover against the indiscriminate risk of liability from death, bodily injury, and damage to third-party property arising from the use of the vehicle on the road.
The advantage is that an innocent third party is protected from the risk arising from the use of a motor vehicle on the road. Without the law making it compulsory for these insurance policies, its patronage would have been insignificant to the growth and development of the national economy.
The Policy offers cover against the damage of another road user’s vehicle by the insured vehicle.
We understand that when you have had an accident and perhaps damaged a prized vehicle, you certainly do not need an insurance company to add to your worries! Therefore, we strive to make it easy both to insure and more importantly, claim on your policy if you should require it
A condition where third-party motor insurance compensation may not be provided.
Third-party insurance does not provide any compensation, if:
a. The accident was caused due to drunken driving or reckless driving
b. The driver is underaged or was found guilty of driving without a valid driving license
c. The accident was a deliberate act ( intentional)
d. The vehicle was used for any commercial purposes or illegal activities
e. The vehicle gets stolen
f. It was discovered that the insured had an accident with another vehicle other than the insured vehicle.
Any bridge in any of the above-listed conditions will definitely affect the premium compensation of the third party.
What does third-party motor insurance cover?
1. The policyholder – The policyholder may also drive a private motor car (but not a motorcycle or commercial vehicle or other mechanically propelled vehicles) not belonging to him and not hired to him under a hire purchase agreement.
2. Any other person who is driving on the policy holder’s order or with his permission provided that the person driving is permitted in accordance with the licensing or other laws or regulations to drive the motor vehicle or has been so permitted and is not disqualified by order of a court of law or by reason of any enactment of regulation in the behalf from driving a such motor vehicle.
3. Property damage liability covers costs resulting from damages to or loss of property.
4. Third-party medical expensis are also covered by this policy.
Features of Third Party Insurance
i. Third-party motor insurance offers a basic level of protection to all policyholders.
ii. It is also referred to as liability-only or act-only policy
iii. It offers protection against legal liability to a third party that may arise due to the policyholder’s involvement in the accident. It compensates for the personal injury, loss of life, and property damage to the third-party
iv. A significant feature of this type of policy is that it has an affordable premium
v. Third-party insurance does not offer protection to the insured car itself
What Are the Types of Third-Party Automobile Insurance?
There are two types of automobile third-party liability coverage:
1. Bodily injury liability and property damage liability: Bodily injury liability covers costs resulting from injuries to a person. These injuries’ costs could include expenses like lost wages, pain and suffering, and hospital care bills due to the accident.
2. Property damage liability: covers costs resulting from damages to or loss of property, like putting in new landscaping materials or fences. If someone destroys your mailbox, it might be covered, as well as compensation for loss of use of your home.
Third-party motor insurance is an insurance policy purchased by the insured “first party” from an insurance company known as the second party to indemnify against death, accidental injury, and property damage of another person called the third party.
However, some countries like Nigeria and the United States of America have made it compulsory that all citizens must have motor insurance before using or keeping a motor vehicle on public roads.