The Motor Vehicle (Third Party) Insurance Act of 1945 mandates every user of motor vehicle to obtain a motor insurance cover from a registered insurance company in Nigeria. Major categories of motor insurance cover are listed below.
a. Third Party Only
The Third Party only cover provides indemnity to the policyholder against his legal liability to Third Party’s death, bodily injury or property damage resulting from the use of the insured vehicle.
b. Comprehensive Motor Insurance Policy
Under this policy, in addition to the cover provided under the Third Party Only cover, this policy also indemnifies the policyholder for loss or damage to the insured vehicle due to road accident, fire or theft.