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5 Benefits Of Third Party Motor Insurance You Need To Know



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Do you know the benefits of a third party motor insurance? Before we delve into the benefits, let’s understand what third party motor insurance means.

Third party car insurance means that the person that is not a party to the agreement between the insured (car owner) and the insurer (insurance company) is covered when there is a claim. Motor third-party insurance is a compulsory policy for all car owners in Nigeria and it is backed by law. Third party motor insurance only covers the following:

  1. Third party property damage,
  2. Third party bodily injury or death.

For example, if you insure your car on third party only insurance (the premium is N5,000.00), and you get involved in a road accident where you are at fault, the insurance company will be liable for the repair of the other person’s car while you repair your own car. Also, if you damage somebody’s property like a building’s fence in an accident, the fence will be repaired by the insurance company. However, you should take note that there is a certain limit to what the insurance company will pay for motor third party property damage. The maximum is N1,000,000.00, but some can pay as high as N2,000,000.00.

The main importance of third party motor insurance is for the protection of other road users while you use your car. If compensation for bodily injury or death, or the repair of a third party car is more than the insurance contract limit, then you would be required to pay the excess. For example if you are involved in an accident and the claim is N1,400,000.00 after adjustment. If your policy limit is N1,000,000.00, what it means is that the third party will be paid N1,000,000.00 by the insurance company while you will pay the remaining N400,000.00 to the third party to settle the claim. The limit can be drawn many times during the policy year, but it cannot exceed the limit.

In Nigeria, many car owners and drivers believe motor third party insurance is among the vehicle license documents that make it legal for them to use the road. In fact, only 1 in 100 car owners understand that third party car insurance is not just a document for road usage, but a savior in times of unexpected occurrences. When you run into Police or other agency road blocks, and your car particulars are checked, if you do not possess third-party insurance, you would be arrested. So, what really does the third party insurance do than allow car owners free passage during stop-and-search by government officials like the Police?


The Benefits of Third Party Motor Insurance:

  1. Peace of mind when you are driving your car.
  2. Confidence when you get into an accident on the road.
  3. Control over your loss (i.e. you do not shoulder claims’ liability alone after an accident).
  4. Shift of burden (i.e. instead of worrying over third party loss, the Insurer supports you).
  5. Security (i.e. you do not have to get in a fight with any third party).


What & How Can You Invoke The Third-Party Insurance Policy?

Anytime you get involved in any of the scenarios mentioned in the previous paragraphs (and covered in the insurance contract); all you need to do is file a claim. You can file a claim directly via the Insurance Company or the agent that underwrote the insurance policy for you. Make sure you have clear photo evidences, and receipts (in case you paid for part or the full claims already).


If you need more consultation, contact:

Jimoh Akintobi (Blogger, and Insurance Advisor & Agent)

Call and SMS: 08174839915

Call and WhatsApp: 07038152995

Also visit:


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