The Nigerian Insurers Association (NIA) was established in 1971 as an umbrella organization for all insurance and reinsurance companies in Nigeria.
The goal of the Association is to protect and advance the common interests of Insurers in Nigeria by creating and sustaining a positive image for the insurance industry and contributing to legislation, and decisions made by the Government and other public Authorities in the best interest of the industry in particular and the national economy in general.
Insurance is a form of risk management where the risk of a loss is transferred, from one entity to another in exchange for payment in order to hedge against the risk of a contingent, uncertain loss.
Financial cost of obtaining an insurance cover, paid as a lump sum or in installments during the duration of the policy. No premium, no cover, and a failure to pay a premium when due automatically cancels the insurance policy.
An insurance claim is when you have a loss or sustain damage that is caused by a peril insured by your insurance policy. Your insurance policy provides coverage and compensation to you for covered losses or the damages you sustain by way of you making a claim.
A person or company that underwrites an insurance risk
An excess is the first amount payable by you in the event of a loss, and is the uninsured portion of your loss, so when you submit a claim you’ll have to pay an excess. It usually has to be paid to the garage to fix your car once it is repaired before you can drive it away.
Indemnity is a contractual obligation of one party to compensate the loss that occurred to the other party due to the act of the indemnitor or any other party
To lower your premium, ask your insurance broker about the
following:
Your insurance broker will assess your needs based on the details you provide about your home or vehicle. In the case of home insurance, a complete inventory of your belongings will help you get the right coverage and make it easier to file a claim.
How you pay your bill is up to you: automatic debit, Internet payment or cheque, or direct payments to your insurance companies/agents are all available.
We recommend that you talk to your insurance broker/underwriter, who can advise you on any changes you would like to make to your policy, including cancellation. Your broker is listed on your insurance policy.
You can choose exactly what you want to cover: your home, its contents, or yourself or if you have specific questions about your coverage, contact your broker/underwriter.
It was increased to provide enhanced benefits for Third Party Motor Insurance Cover.
Firstly, to address the effects of inflation on prices all over the world, the limit to claims for damages to third-party vehicles has been increased from one million naira to three million naira.
Secondly, when you get your third-party motor insurance, you automatically get an ECOWAS BROWN CARD, which means your vehicle now has insurance cover across all West African countries and, if ever it is liable on Nigerian roads, for damages to a vehicle from any West African country.
With these enhanced benefits, the premium to be paid for third-party motor insurance has also increased. For instance, for private car owners, the premium for third-party motor insurance has increased from five thousand naira to fifteen thousand naira. This is to enable insurers adequately bear the cost of repairs, whenever the need arises.
Buy your motor insurance, please log on to www.niip.ng or visit any NIA member companies underwriting general insurance businesses.
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ECOWAS Brown card is a mandatory insurance certificate for all motorists travelling across the West African borders. The Brown Card provides the motorist a complete guarantee for prompt, fair, and immediate compensation for any accident caused inside and outside his own residence country within West Africa and also facilitates free movement for international motorists within the community.
Kindly make your request through any NIA member companies for assistance.
Reporting a claim is quick and easy and can be done online with some insurance companies. Visit your insurer’s website (see our member companies section and select your insurer) and click on report a claim and proceed.
Third Party Motor Insurance is the minimum insurance cover that every car user and/or owner plying Nigerian roads are required to have.
The Third-Party Motor Insurance covers death or bodily injuries and damages to the property of a third party caused by the use of the insured car.
Comprehensive auto insurance or comprehensive car insurance is a type of insurance policy that not only covers third-party damages and losses but also those caused to you and your vehicle.
It provides comprehensive coverage for death, bodily injury, accidental third-party property damages, and those sustained by the insured car. It also takes care of liability incurred during an accident.
Third-Party insurance only covers you against third-party damages and losses (i.e in an accident, only the other person’s vehicle is covered). Comprehensive insurance on the other hand covers both third-party damages and yours.
Finding auto insurance online takes as little as 5 minutes
If you lie about your driving history, the DMV reports that you are committing what is known as “soft fraud.” If you do lie, the insurance company can deny you services and cancel your coverage.
Auto insurance covers you, your car, and others involved in a vehicular accident.
Yes, there are different insurance coverage types and they are as follows: Death and Bodily Injury Liability, Property Damage Liability, Third Party Fire & Theft, Comprehensive, Collision, and Uninsured & Underinsured.
Yes, auto insurance is one of the class of Insurance made mandatory by law (Insurance Act 2003 and Motor Vehicle (Third Party) Ordnance, 1945) frequently with the objective of providing protection to third parties and the general public.
If you get in an accident and you’re uninsured, you face getting sued, losing your life’s savings and getting jail time. The penalty for non-compliance is N250,000 or one year imprisonment or both.)
Most insurance companies leave this to your choice. Some will offer you a lower insurance premium rate if you pay your premiums annually.
An insurance deductible is the amount of money you pay after an accident before your insurance company pays for the remaining amount.
Yes, but you will be charged a cancellation fee. If you wait until the end of your policy, then you won’t be charged.
By being a good driver with a clean driving record (Accident-Free)
You will use their auto insurance. For whatever costs are left over, you will then use your insurance.
This depends on the shape of the vehicle. Typically, older cars are provided with less coverage because they are not worth very much money, and would likely be scrapped altogether in the case of an accident.
They can deny your claims if they have proven beyond a reasonable doubt that you were driving recklessly or lied about accident damages with fraudulent intention.
Fire & Theft Coverage and Comprehensive Coverage will protect you in this type of event.
Yes. Auto insurance companies will share your insurance claims history with each other.
Dial *565*11# on your phone and follow all the Instructions
This depends entirely on your area and what type of coverage you are looking for. The classification and capacity of each Insurance company is based on the class of Insurance business it is approved and licensed to transact. Some are licensed as Specialist Life Insurance Companies, General Insurance Business or Composite Insurance Companies hence it will be difficult to rank any Insurance Company using the same parameters.
You will be charged a cancellation fee.
The person who drives your car at the time of an accident is covered. He/she needs to have your permission to use the vehicle. The insurer is the person named on the policy and his/her spouse. Members of your family who have a driver’s license are to be listed on your insurance policy.
The insurance company will not insure you if you, or the relative you are staying with, has a poor driving record.
Compulsory Insurance is a class of Insurance made mandatory by law frequently with the objective of providing protection to third parties and the general public.
Sixteen (16) insurance products are directly and indirectly made compulsory in Nigeria but six (6) are very prominent which includes:
N250, 000.00 and/or three years imprisonment in the event of default.)
Section 6 of Pension Reform Act, 2014 state that “where the employer failed, refused or omitted to make payment as and when due, the employer shall make arrangements to effect the payment of claims arising from the death of any staff in its employment during such period”
Section 64 of the Insurance Act, 2003 requires every owner or contractor of any building under construction with more than two (2) floors must take out an insurance policy to cover liability against construction risks caused by his negligence or that of his servants, agents or consultants which may result in death, bodily injury or property damage to workers on-site or members of the public.
It covers construction risks resulting in (1) Death of Site Workers; (2) Death of Third Parties; (3) Injury to Site Workers or Third Parties; and (4) damage to Site Workers’ or Third Parties’ property.
This insurance policy also covers liability for the collapse of buildings under construction.
Owner and /or contractor of the Building under Construction; Sub Constructors, Agents, Servants and Consultants of the Contractor or owner.
Survivors of the site worker or member of the public who dies in a collapsed construction work, Site Worker or Member of the public who becomes injured in a collapsed construction work, and damage to third party property.
Section 65, Ins. Act 2003 requires the owner or occupier of every public building to be insured against liability for loss or damage to property or death or bodily injury caused by collapse, fire, earthquake, storm or flood. The Act defines a public building as one to which members of the public have access for educational, recreational, medical, and commercial purposes
Section 65 (4) specifies that 0.25% of the premium collected is to be paid into a Fire Services Maintenance Fund to be administered and disbursed by NAICOM for the purpose of providing grants or procurement of equipment to institutions engaged in fire-fighting services in the country.
It covers the Perils of (1) Collapse, (2) Fire, (3) Storm, (4) Earthquake, and (5) Flood
Owners and Occupiers of following Buildings. All business and office premises (government, corporate, private); All hotels, guest houses and hostels; All residential buildings that are let out in full or in part; All recreational centres, club houses, cinema halls etc; All schools and training institutions; All petrol and Gas stations; and All other buildings where members of the public have ingress or egress as a licensee; tenants; lodgers; and for educational medical; business and recreational purposes.
User and licensee who may die or sustain an injury as a result of any of the five (5) selected perils; User, licensee, and third party who may sustain property damage as a result of any of the five selected perils.
Health Care Professional Indemnity as required by the National Health Insurance Scheme Act of 1999. Section 45 of that Act requires all licensed health care providers to have a professional indemnity policy.
The law defines a healthcare provider as any registered Government or private healthcare practitioner and hospital or maternity center.
It covers (1) Death; (2) Permanent Disability; (3) Partial Disability; and (4) Injury by Shock; all arising from mistakes, negligence, errors, and acts of commission and omission of medical practitioners and institutions, and Professionals providing services under the NHIS.
Chief Medical Director
(1) The patient; and (2) the relation of the patient who qualifies under the doctrine of “love and care”.
The Group Life Assurance Scheme is a statutory creation by virtue of Section 9(3) of the Pension Reform Act, 2004, amended in Section 5 of the Pension Reform Act, 2014 which requires “every employer, to which the Act applies, to maintain Life Insurance Policy in favor of the employee for a minimum of three times the annual total emolument of the employee and premium shall be paid not later than the date of commencement of the cover.”
The Scheme provides that in the event of the death of any serving officer, his or her next of kin would be given a relief equivalent to three times the annual total emoluments of the deceased, in addition to the normal entitlement of the deceased officer after service.
It covers (1) Death; (2) Disappearance; and (3) Total Permanent Disability of all staff of public and private sector organizations with more than three (3) employees.
All employers of labor in the public and private sectors with more than three (3) employees are covered by the Pension Reform Act.
(1) The survivors of the deceased employee; and (2) mentally or physically disabled employees.
Employers’ liability insurance protects a company from legal claims filed by workers who have experienced a job-related injury or illness. It is a type of liability insurance that, in conjunction with workers’ compensation, covers companies against costs and claims made by injured employees.
As required by the Employee Compensation Act of 2010 (which repealed the Workmen Compensation Act of 1987). The Act requires every employer, within the first two years of the commencement of the 2010 Act, to make a minimum monthly contribution of 1% of the total monthly payroll of employees to the Employee Compensation Fund.
The Fund shall be used to pay adequate compensation to employees or their dependents for any death, injury, disease, or disability arising out of or in the course of their employment.
It covers Work-related injury or sickness resulting in the death or disability of Manual Labour Employees; Service or apprenticeship staff; Clerical staff; and others.
All Employers of Labour.
Survivors of deceased employees/workers; and injured/disabled workers.
Accidents and mishaps are an unfortunate part of life. Being prepared can make the experience less frightening. Here are some helpful tips on what to do in case of an accident:
Report the accident to your insurance company as soon as possible (immediate notification).
