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What your car insurers won't tell you
- Your N5,000 third-party car insurance gives you 1 million naira cover

By Azuka Onwuka

Why do Nigerians bicker when their cars are involved in minor accidents? It is usually argued that the reason is that most Nigerian vehicle owners do not have "comprehensive insurance cover."

Nigerian comedians use this as a joke regularly, comparing how Nigerian vehicle owners react to minor road accidents and how vehicle owners in the Western world react to similar accidents. When two vehicles have a minor accident on a Nigerian road that involves some dent or some damage to the headlamps or rear lamps, the two drivers would quickly jump out of their vehicles, inspect their vehicles and start shouting at each other, wagging fingers at each other, which may degenerate to an exchange of blows. Some may seize the offending driver or tow his vehicle away and insist that he must pay for the damage caused. In some cases, the person whose car has suffered more damage may rush to the car of the other person and damage its mirror or headlamp or even windscreen in retaliation. As the comedian acts this out, members of the audience laugh because they have either witnessed it or participated in it.

However, when such a minor road accident happens in the UK or the US, the comedian changes his countenance. He paints a picture of how the two drivers will come out of their vehicles gently, survey what has happened, exchange insurance policy numbers and business cards and drive off. The reason is that they know that their insurance companies will take care of the damage.

These jokes have sunk into most Nigerians as the reality. Most Nigerian car owners believe that the N5,000 third party insurance does not cover anything. The belief is that it is procured just to avoid the trouble from police officers who check vehicle particulars on the highways. But is that true?

That is a big lie. That so-called meaningless N5,000 insurance cover that you think is just for the police gives you a cover of N1,000,000 (one million naira) for any damage to any person's property. Just open your glove compartment now, bring out your car insurance and read it. If it is not written on the front page, turn the leaf and check for it. You will see that the N5,000 you paid to the insurance company is not to fulfil all righteousness and escape police wahala. It is meant to protect you from fighting with another road user in the event of an accident. It is meant to ensure that you don’t hand over N100,000 or N300,000 to another road user because your car damaged the person’s headlamp or bumper or fender or bonnet. It also has an unlimited cover limit for any death or bodily injury you cause a third party with your vehicle.

So when you hit someone's vehicle or damage someone's property or injure someone or even kill someone, as long as your N5,000 insurance is valid, your insurance company will pay that person the cost of the damage within one million naira, if it is property, but if it is bodily injury or death, the amount may be decided mutually or by the law court.

It is called third-party insurance cover because it does not cover losses you incur in an auto accident. You are the first party; the insurance company is the second party; while any other person hit by your vehicle is the third party. So you have insured your car for any damage done to any other road user. If you want your car to be covered, you do the comprehensive insurance.

But if you and someone hit each other and damage each other's vehicles and both of you have that N5,000 insurance cover, the person's insurer should pay for the damage to your vehicle, while your insurer should pay for the damage done to the person’s vehicle.

So when Nigerians are involved in minor accidents, there is no need for all the drama they engage in. They just need to confirm that the other party has a valid N5,000 insurance cover. And because of the fear of the police on the highways, most private car owners have that insurance. Only the drivers of private intra-city commercial buses usually default in this.

However, when you want to renew your insurance cover, don't give it to touts to do for you, to avoid spending your money to get a fake document. Check around you for the nearest office of an insurance company, broker or agent, or check for the list of Nigerian insurance companies online and send a message to them. They may even come to your office to collect the material.

That many Nigerian car owners or drivers don’t know their right is to the advantage of the insurance companies. What it does for them is that most people who are involved in road accidents do not report such to their insurers. Most car owners ignorantly pay the other party, if such is demanded, and go away to repair their vehicle. Sometimes, the owner of the vehicle decides not to collect any money and goes on to repair the vehicle. Such people are prayed for and called good men or women.

Naturally, the insurers do not bother to explain to those who patronise them what their rights are. Most times, vehicle owners do not even get the vehicle insurance cover themselves. They give money to a tout to procure it. Ironically, getting an insurance policy for a vehicle is the easiest paper one can get for a vehicle. Unlike other vehicle-related documents like driving licence, road-worthiness licence, vehicle licence, proof of ownership, registration number document and the like, the insurance cover is the only one that is not issued by a government agency. Therefore, it does not involve any bureaucracy, which usually causes delays which lead to bribery and corruption in the name of “processing fee.” There is nothing to process in an insurance policy. Just like banks are open all over the country looking for customers, so do insurance companies have branches and outlets all over the country looking for patrons. And just as banks are regulated by the Central Bank of Nigeria, so are insurance firms, brokers, and agents regulated by National Insurance Commission.

Once you make a payment to the insurance firm, your details and the details of the car are entered and your policy certificate is printed out. The document contains the policy number as well as your certificate number, which you will quote in the event of any claim. You can immediately verify the genuineness of your insurance by entering your policy number or vehicle number in the portal of the Nigerian Insurance Industry Database (NIID). If there is any hanky-panky, you can immediately report the insurance company, and the individual or company will be penalised.

The interesting thing about vehicle insurance is that the amount (N5,000) is so small that no vehicle owner should find it hard to pay annually. And one should not wait for it to expire for even a day before renewing it. It is even better to renew it a week or so before its due date to avoid any story. Accidents don't give a notice before occurring.

If a car owner wants to add N100,000 cover for his vehicle, he can take the N7,500 special policy. This package covers the third party for up to N1,000,000, but covers you for up to N100,000. This will ensure that anytime you have a minor accident, your insurance company can take care of it for you.

But if you want your insurance company to take full responsibility, then you can go for the comprehensive cover, which is usually about 5 percent of the worth of your car. This will also cover the third party.

The ignorance about vehicle insurance is similar to that about health insurance. Most Nigerians do not know that they can insure themselves for about N20,000 annually and get treated throughout the year in good hospitals.

It is said that knowledge is power. Sadly, the Good Book says: "My people perish for lack of knowledge."

--- Twitter
©️ The Punch

ADVISE TO YOU ALL AGAINST NEXT WEEK MONDAY 4TH MAY, 2020.

All of us are looking forward to Monday, 4th of May, 2020 to dash out to our business and other engagements. Please read this, digest and practice it:

We have to change our way of life and help ourselves by PRACTICING PERSONAL HYGIENE.

We will be dealing with a lot of people. Danfo Drivers, Hawkers, Customers, Road users, Food Vendors, Marwa/Keke, Taxi and Bike Men etc. We won't know who has the Virus. Hence, we need PERSONAL HYGIENE.

1. We Can No More Use Our Teeth To Tear "Pure Water". Sellers Hands Had Touched It. You Get My Drift.

2. Don't Allow Seller To Peel and Blow Your Groundnuts (or Buy Already Peeled Ones). Remember, Corona Thrive On Droplets.

3. Eat Only At Hygienic Places. Clean Environment and Where Seller Uses Clean Protective Equipments.

4. Hugging May Be Suspended. Social Distancing Advised.

5. Once you torch currencies and coins, hand-washing with soap is key because currencies travel a lot.
When You Touch Naira Notes Given As Change By Conductors, Sellers Etc, Ensure You Don't Put Same Hand In Mouth, Eyes or Nose. Wash Your Hands Appropriately. Or Use Sanitizer Before Hand.

6. You Can't Place Your Mouth on Bottle of Coke of Another Person (Pour In Cups if You Must Share)..etc.

7. You Must Clean Surfaces Always Especially Where Many People Make Use of.

8. Carry Your Bag(s) Yourself. Era of Oga Sir Is Over. Except You Are Comfortable With Coro...

9. Stop Touching People When You Talk. Bad Habit. Now It's Time To Stop It.

10. Whenever We Buy Something And It Is Put In A Nylon, Have It In Mind That The Nylon May Be Contaminated. Get Home and Wash Your Hands.

11. Always Close The Toilet Seat After Flushing. Bacteria, Viruses etc Goes On Air With Uncovered Toilet Seat.

12. Finally, But Not The Least, Whenever You Get Home. Don't Hug Your Kids or Spouse. First Pull Off Your Clothes For Washing, Go To The Bathroom and Either Take A Bath With Soap (It Will Make Some of Us Even Lighter In Complexion) or Wash Our Hands Before You Hug Your Kids and or Spouse.

13. If possible drive your own car until things get much better, cook and carry your own food and drinking water.

14. If you do not have any business outside or not on essential duties, please remain in your house.

Stay safe.
Please let us be careful 🙏

ADDRESS BY H.E. MUHAMMADU BUHARI,
PRESIDENT OF THE FEDERAL REPUBLIC OF NIGERIA ON THE CUMULATIVE LOCKDOWN ORDER OF LAGOS AND OGUN STATES AS WELL AS THE FEDERAL CAPITAL TERRITORY ON COVID- 19 PANDEMIC
AT THE STATE HOUSE, ABUJA
MONDAY, 27th APRIL, 2020


1. Fellow Nigerians

2. I will start by commending you all for the resilience and patriotism that you have shown in our collective fight against the biggest health challenge of our generation.

3. As at yesterday, 26th April 2020, some three million confirmed cases of COVID nineteen have been recorded globally with about nine hundred thousand recoveries. Unfortunately, some two hundred thousand people have also diedpassed away as a result of this pandemic.

4. The health systems and economies of many nations continue to struggle as a result of the coronavirus pandemic.

5. Nigeria continues to adopt and adapt to these new global realities on a daily basis. This evening, I will present the facts as they are and explain our plans for the coming month knowing fullyfully aware that some key variables and assumptions may change in the coming days or weeks.

6. Exactly two weeks ago, there were three hundred and twenty three confirmed cases in 20 States and the Federal Capital Territory.

7. As at this morning, Nigeria has recorded one thousand two hundred and seventy-three cases across 32 States and the FCT. Unfortunately, these casesthis includes 40 deathsfatalities.

8. I will useam using this opportunity to express our deepest condolences to the families of all Nigerians that have lost their lives loved ones as a result of the COVID nineteen Pandemic. This is our collective loss and we share in your grief.

9. Initial models predicted that Nigeria will record an estimated two thousand confirmed cases in the first month after the index case.

10. This means that despite the drastic increase in the number of confirmed cases recorded in the past two weeks, the measures we have put in place thus far have yielded positive outcomes against the projections.

11. The proportion of cases imported from other countries has reduced to only 19% of new cases, showing that our border closures yielded positive results. . These are mostly fellow Nigerians returning through our land borders. We will continue to enforce land border arrival protocols as part of the containment strategy.

12. Today, the Nigerian Centre for Disease Control (NCDC) has accredited 15 laboratories across the country with an aggregate capacity to undertake 2,500 tests per day across the country.

13. Based on your feedback, Lagos the State Government and the FCT with support from NCDC is hasve established several sample collection centers in Lagos and the FCT. They are also reviewing their laboratory testing strategy to further increase the number of tests they can perform including the accreditation of selected private laboratories that meet the accreditation criteria.

14. Several new fully equipped treatment and isolation centres have been operationalised across the country thereby increasing bed capacity to about three thousand. At this point, I will commend the State Governors for the activation of State-level Emergency Operation Centres, establishment of new treatment centres and the delivery of aggressive risk communication strategies.

15. Over ten thousand healthcare workers have been trained. For their protection, additional personal protective equipment have been distributed to all the states. Although we have experienced logistical challenges, we remain committed to establish a solid supply chain process to ensure these heroic professionals are can work safely and are properly equipped.

16. In keeping with our Government’s promise to improve the welfare of healthcare workers, we have signed a memorandum of understanding on the provision of hazard allowances and other incentives with key health sector professional associations. We have also procured insurance cover for five thousand frontline health workers. At this point, I must commend the insurance sector for their support in achieving this within a short period of time.

17. Nigeria has also continued to receive support from the international community, multilateral agencies, the private sector and public-spirited individuals. This support has ensured that critical lifesaving equipment and materials, which have become scarce globally, are available for Nigeria through original equipment manufacturers and government-to-government processes.

18. The distribution and expansion of palliatives which I directed in my earlier broadcast is still on going in a transparent manner. I am mindful of the seeming frustration being faced by expectant citizens. I urge all potential beneficiaries to exercise patience as we continue to fine tune our logistical and distribution processes working with the State Governments.

18.19. I have directed the Central Bank of Nigeria and other financial institutions to make further plans and provisions for financial stimulus packages for small and medium scale enterprises. We recognise the critical role that they play in Nigeria’s economy.

19.20. Our Security Agencies continue to rise to the challenge posed by this unusual situation. While we feel deeply concerned about isolated security incidents involving hoodlums and miscreants, I want to assure all Nigerians that your safety and security remains our primary concern especially in these exceedingly difficult and uncertain times. As we focus on protecting lives and properties, we will not tolerate any human rights abuses by our security agencies. The few reported incidences are regrettableregrettable, and I want to assure you that the culprits will be brought to justice.

20. I urge all Nigerians to continue to cooperate and show understanding whenever they encounter security agents. Furthermore, for their protection, I have instructed the personnel of the security agencies be provided with the necessary personal protective equipment for their own protection.
21.

21.22. As we continue to streamline our response in the epicenters of Lagos and the FCT, I remain am concerned about the unfortunate developments in Kano in recent days. Although an in-depth investigation is still ongoing, we have decided to deploy additional Federal Government human, material and technical resources to strengthen and support the State Government’s efforts. We will commence implementation immediately.

22.23. In Kano, and indeed many of other States that are recording new cases, preliminary findings show that such cases are mostly from interstate travel and emerging community transmission.

23.24. Drawing from these, I implore all Nigerians to continue to adhere strictly to the advisories published by the Nigeria Centre for Disease Control. These include rRegular hand washing, social physical distancing, wearing of face masks/coverings in public, avoidance of non-essential movement and travels and avoidance of large gatherings remain paramount.

24.25. Fellow Nigerians, for the past four weeks, most parts of our country have been under either Federal Government or State Government lockdowns. As I mentioned earlier, these steps were necessary and overall, have contributed to slowing down the spread of COVID nineteen in Nigeria.

25.26. However, such lock downs have also coame at a very heavy economic cost. Many of our citizens have lost their means of livelihoods. Many businesses have also shut down. No country can afford the full impact of a sustained lockdown while awaiting the development of vaccines or cures.

26.27. In my last address, I mentioned the Federal Government will develop strategies and policies that will protect lives while preserving livelihoods.

27.28. In these two weeks, the Federal and State Governments have jointly and collaboratively worked hard on thishow to balance the need to protect health while also preserving livelihoods, leveraging global best practice while keeping in mind our peculiar circumstances.

28.29. We looked atassessed how our factories, markets, traders and transporters can continue to function while at the same time respecting adhering to the NCDC guidelines on hygiene and social distancing.

29.30. We assessed how our children can continue to learn without compromising their health.

30.31. We reviewed how our farmers can safely plant and harvest in this rainy season to ensure our food security is not compromised. Furthermore, we also discussed how to safely transport food items from rural production areas to industrial processing zones and ultimately, to the key consumption centers.

31.32. Our goal was to develop implementable policies that will ensure our economy continues to function with while still maintaining our aggressive response to the COVID nineteen pandemic. These same difficult decisions are being faced by leaders around the world.

32.33. Based on the above and in line with the recommendations of the Presidential Task Force on COVID nineteen, the various Federal Government committees that have reviewed socio-economic matters and the Nigeria Governors Forum, I have approved for a phased and gradual easing of lockdown measures in FCT, Lagos and Ogun States effective from Saturday, 2nd May, 2020 at 9am.

33.34. However, this will be followed strictly with aggressive reinforcement of testing and contact tracing measures while allowing the restoration of some economic and business activities in certain sectors.

34.35. The highlights of the new nationwide measures are as follows;
a. Selected businesses and offices can open from 9am to 6pm;
b. There will be an overnight curfew from 8pm to 6am. This means all movements are will be prohibited during this period except essential services;
c. There will be a ban on non-essential inter-state passenger travels until further notice;
d. There will be Ppartial and controlled interstate movement of goods and services will be allowed to allowfor the movement of goods and services from producers to consumers; and
e. We will strictly ensure the mandatory use of face masks or coverings in public in addition to maintaining physical distancing and personal hygiene. Furthermore, the restrictions of on social and religious gathers shall remain in place. State Governments, corporate organisations and philanthropists are encouraged to support the production of cloth masks for citizens.

35.36. For the avoidance of doubt, the lockdown in the FCT, Lagos & Ogun States shall subsist remain in place until these new ones come into effect on Saturday, 2nd May 2020 at 9am.

36.37. The Presidential Task Force shall provide sector specific details and timing guidelines to allow for preparations by Governments, businesses and institutions.
37. The above are guidelines. State Governors may choose to amend adapt and expand based on their unique circumstances provided they maintain alignment with the guidelines issued aboveon public health and hygiene.
38.
38.39. These revised guidelines do will not apply for to Kano State. The total lockdown recently announced by the State Government shall remain enforced be enforced for the full duration. The Federal Government shall deploy all the necessary human, material and technical resources to support the State in controlling and containing the pandemic.

39.40. I wish to once again commend the frontline workers across the country who, on a daily basis, risk everything to ensure we win this fight. For those who got infected in the line of duty, be rest assured that Government will do all it takes to support you and your families during this exceedingly difficult period. I will also take this opportunity to assure you all that your safety, wellbeing and welfare remains paramount to our Government.

40.41. I will also recognize recognise the support we have received from our traditional rulers, the Christian Association of Nigeria, the Nigerian Supreme Council for Islamic Affairs and other prominent religious and community leaders. Your cooperation and support has significantly contributed to the successes we have recorded to date. I will urge you all to please continue to create awareness on the seriousness of coronavirus among your worshippers and communities while appealing that they strictly comply with public health advisories.

41.42. I will also thank the Nigeria Governors’ Forum and the Presidential Task Force for all their hard work to date. Through this collaboration, I remain confident that success is achievable.

42.43. I also wish to thank corporate organisations, philanthropists, the UN family, the European Union, friendly nations, the media and other partners that have taken up the responsibility of supporting our response.

43.44. And finally, I will thank all Nigerians again for your patience and cooperation during this difficult and challenging period. I assure you that government shall continue to take all necessary measures to protect the lives and livelihoods our citizens and residents.
39. I thank you for listening and may God bless the Federal Republic of Nigeria