By Zainab Iwayemi
While many road drivers are quite confident about their driving skill, there is always a need to have a plan in place to take care of unforeseen eventualities. Even the most professional drivers in the world are prone to ‘hit clause’.
In this context, the hit clause is the tendency of a driver being hit by a vehicle or the tendency of hitting another’s vehicle. Situations such as this are best prepared for by opting for motor vehicle insurance.
What if an accident doesn’t occur? This is a question that insurance sales people are often asked by prospective buyers who feel insurance shouldn’t be their top priority especially considering that so many bills have to be paid. But a quick response to that would be a contradicting question; what if it occurs?
Simply put, motor insurance is an insurance policy that protects the policyholder against financial losses resulting in the event of an accident or other damages sustained by the insured vehicle. Its primary use is to provide financial protection against physical damage or bodily injury resulting from a traffic collision, fire, burglary, theft, etc.
Motor insurance products
While private or commercial vehicles are insurable, the amount of premium paid depends largely on the type of products and policy of insurance firms. These days, innovative products are continuously introduced in line with the growing pace of technology and digitization.
Today, there are motor insurance products that allow policyholders to enjoy health benefits as part of the policy rider to the comprehensive motor insurance policy.
With the basic category being third party and comprehensive insurance, insurance firms across the country offer packaged motor insurance products in an interesting cover to attract members of the public.
In addition to the third party motor insurance policies which cover damages to the other person’s vehicle or property up to N1 million, Leadway Insurance for instance, offers the third party plus (autobase) insurance for private vehicles. With an excess of N50,000 or 10 percent, this insurance covers accidental damage to third party vehicles, as well as to one’s own vehicle while the Leadway comprehensive motor insurance covers against fire, theft and other damages caused to vehicles. These damages include death, bodily injury and damages to the vehicle or property of third parties caused by the insured vehicle(s) as well as accidental total and permanent disability to the insured to a limit of ₦1 million and insured medical expense including that of other vehicle’s passenger(s) to a limit of ₦100,000.00 in the event of a hospitalization due to accident.
Other insurance companies, such as Linkage Assurance, NEM Insurance, Allianz, AXA Mansard and others provide similar services but with a tweak in service provision.
With as little as N5,000 these products have been planned for vehicle owners to enjoy the protection of the hit clause which could come anytime without knocking.
Why motor vehicle insurance?
According to the motor vehicles (third party insurance) act, it is imperative that car owners purchase motor insurance prior to taking vehicles out on the roads. In the view of experts, having a vehicle covered against future events avails vehicle owners a host of benefits.
In a conversation with Pius Apere, CEO of Anchor Actuarial Service Limited, he asserted that insuring motor vehicles is highly significant to vehicle owners.
He said, “It is imperative that vehicle owners purchase motor insurance prior to taking vehicles out on the roads. the users of motor vehicles must be insured against third-party risks.”
While many buyers believe that motor insurance is a waste of money, not very many understand that motor insurance policy, over the long run, has become a very important investment.
Today, motor insurance has gone beyond just bodily injury, covering up to medical expenses as part of the policy. What is even more interesting is that these policies are designed to match the size of buyer’s pocket
One thing all drivers on the road need to bear in mind is, accidents could be caused by anyone, as long as vehicles continue to wheel across the earth, there is a tendency to hit or be hit by other vehicles. But a motor insurance policy would be there to provide insurance coverage against the hit clause.