Motor Insurance

Akọwa Nkọwa

(i) ECOWAS Brown Card

The ECOWAS Brown Card is a regional motor insurance scheme operated by member states of the Economic Community of West African States. It is a certificate of insurance that guarantees prompt and fair compensation to victims of road accidents caused by visiting motorists from other ECOWAS countries. It enables a motorist to cross national borders within the sub-region with a single insurance document, so that a victim in the country visited can claim against a national bureau rather than pursue a foreign insurer.

(ii) Two conditions under which the ECOWAS Brown Card is issued

1. The vehicle owner must already hold a valid motor insurance policy in his home ECOWAS country before the Brown Card can be issued as an extension.
2. The motorist must be undertaking or intending a journey that crosses into one or more other ECOWAS member states (inter-state travel), and the issuing insurer must be a member of the national bureau operating the scheme.

2. Three types of policies available under motor insurance

1. Third party only policy: Covers the insured's legal liability for death or bodily injury to third parties and damage to their property, but not the insured's own vehicle.
2. Third party, fire and theft policy: Gives the third party cover above and, in addition, indemnifies the insured for loss of or damage to his own vehicle by fire or theft.
3. Comprehensive policy: The widest cover, adding to the above accidental and collision damage to the insured's own vehicle plus extras such as medical expenses and personal accident benefits.