Motor Insurance

Muhtasari

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.

Malengo

  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

Maelezo ya Somo

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.

Tathmini ya Somo

Hongera kwa kukamilisha somo la Motor Insurance. Sasa kwa kuwa umechunguza dhana na mawazo muhimu, ni wakati wa kuweka ujuzi wako kwa mtihani. Sehemu hii inatoa mazoezi mbalimbali maswali yaliyoundwa ili kuimarisha uelewaji wako na kukusaidia kupima ufahamu wako wa nyenzo.

Utakutana na mchanganyiko wa aina mbalimbali za maswali, ikiwemo maswali ya kuchagua jibu sahihi, maswali ya majibu mafupi, na maswali ya insha. Kila swali limebuniwa kwa umakini ili kupima vipengele tofauti vya maarifa yako na ujuzi wa kufikiri kwa makini.

Tumia sehemu hii ya tathmini kama fursa ya kuimarisha uelewa wako wa mada na kubaini maeneo yoyote ambapo unaweza kuhitaji kusoma zaidi. Usikatishwe tamaa na changamoto zozote utakazokutana nazo; badala yake, zitazame kama fursa za kukua na kuboresha.

  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

Vitabu Vinavyopendekezwa

Principles of Risk Management and Insurance
Principles of Risk Management and Insurance
Manukuu: Thirteenth edition
Mchapishaji: Pearson
Mwaka: 2016
ISBN: 978-0-13-408257-8
Maelezo: The standard introduction to risk and insurance, covering risk management, insurer operations and the main lines of life, health, property and liability cover.
Fundamentals of Risk and Insurance
Fundamentals of Risk and Insurance
Manukuu: Tenth edition
Mchapishaji: Wiley
Mwaka: 2008
ISBN: 978-0-470-08753-4
Maelezo: A clear account of the nature of risk and the economics of insurance, written for beginning students across life, health, property and liability insurance.
Fundamentals of Insurance
Fundamentals of Insurance
Manukuu: Second edition
Mchapishaji: Himalaya Publishing House
Mwaka: 2017
ISBN: 978-93-5097-079-9
Maelezo: An accessible treatment of insurance in four parts: the basics of risk, insurance management, life insurance and non-life insurance.

Maswali ya Zamani

Unajiuliza maswali ya zamani kuhusu mada hii yanaonekanaje? Hapa kuna idadi ya maswali kuhusu Motor Insurance kutoka miaka iliyopita.

WAEC SSCE - Insurance - 2014

Swali 1 Ripoti

  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.

Tazama Jibu