Motor Insurance

Aperçu

Every legally driven car, bus and okada on a Nigerian road carries motor insurance, whether the owner realises it or not, because the law will not let it move without at least the minimum cover. Motor insurance is the largest compulsory class of insurance in the country, and the one most likely to touch your own family. Yet most drivers cannot say what their certificate actually protects, or whose loss it is really designed to pay.

This lesson sorts the confusion out. You will learn the ladder of motor policies from bare third party cover up to full comprehensive, exactly what each one pays for and what it quietly leaves out, why the law forces every motorist to buy third party cover, and how the ECOWAS Brown Card lets a Lagos driver cross into Cotonou or Accra and still be insured. These are marks that appear on every Insurance paper.

Objectifs

  1. Identify the types of motor insurance policy and state the cover each provides
  2. Explain the scope of cover under a third party policy and under a comprehensive policy
  3. Explain the statutory requirement for third party motor insurance in Nigeria
  4. Describe the ECOWAS Brown Card scheme and explain its purpose for cross-border motoring

Note de cours

A commercial driver in Kaduna knocks down a pedestrian on his way to the motor park. The victim spends months in hospital and cannot work. Who pays? If the driver is a rich man, perhaps he settles privately, but most drivers are not rich, and an injured stranger cannot wait on the driver's goodwill. This is the problem motor insurance was invented to solve: making sure that an innocent person hurt on the road can actually be compensated, whether or not the driver who hurt them has money. Once you see that motor insurance exists first for the victim and only second for the vehicle owner, every rule in this topic falls into place.

Évaluation de la leçon

Félicitations, vous avez terminé la leçon sur Motor Insurance. Maintenant que vous avez exploré le concepts et idées clés, il est temps de mettre vos connaissances à lépreuve. Cette section propose une variété de pratiques des questions conçues pour renforcer votre compréhension et vous aider à évaluer votre compréhension de la matière.

Vous rencontrerez un mélange de types de questions, y compris des questions à choix multiple, des questions à réponse courte et des questions de rédaction. Chaque question est soigneusement conçue pour évaluer différents aspects de vos connaissances et de vos compétences en pensée critique.

Utilisez cette section d'évaluation comme une occasion de renforcer votre compréhension du sujet et d'identifier les domaines où vous pourriez avoir besoin d'étudier davantage. Ne soyez pas découragé par les défis que vous rencontrez ; considérez-les plutôt comme des opportunités de croissance et d'amélioration.

  1. Which motor policy covers the insured's liability to other road users but does nothing for the insured's own vehicle? A. Comprehensive B. Third party, fire and theft C. Third party only D. Personal accident Answer: C
  2. A comprehensive motor policy covers all of the following EXCEPT: A. Accidental damage to the insured vehicle B. Ordinary wear and tear of the insured vehicle C. Theft of the insured vehicle D. Injury to a third party Answer: B
  3. In Nigeria, third party motor insurance is best described as: A. Optional for private cars B. Compulsory by law C. Required only for commercial vehicles D. Available only with a Brown Card Answer: B
  4. The main purpose of the ECOWAS Brown Card is to provide: A. Comprehensive cover for vehicles within Nigeria only B. Recognised third party motor cover across ECOWAS member states C. Life assurance for cross-border travellers D. Free repairs at approved workshops abroad Answer: B
  5. Under a third party only policy, a driver who negligently damages his own car and a stranger's fence will have paid: A. Both the car and the fence B. Only his own car C. Only the stranger's fence D. Neither, as third party cover pays nothing Answer: C

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Questions précédentes

Vous vous demandez à quoi ressemblent les questions passées sur ce sujet ? Voici plusieurs questions sur Motor Insurance des années précédentes.

WAEC SSCE - Insurance - 2014

Question 1 Rapport

  1. (i)         Explain ECOWAS Brown Card.

(ii)         State two conditions under which ECOWAS Brown Card is issued

2. List and explain three types of policies available under motor insurance.

Voir la réponse