Everything you need to know about third party insurance
A third party insurance policy is obtained by an insured from an insurance company for protection against the claims of another.
In essence, third-party insurance is a type of liability insurance. Regardless of the cause of the losses or damages, the first party is liable for them. Automobile insurance is one of the most popular kinds of third-party insurance.
Additionally, the coverage shields one from legal responsibility resulting from unintentional damages, including any fatality and harm done.
The insurance rate is based on a number of factors, including the type of vehicle and its value.
Third-party insurance provides protection from claims of damages sustained by a motorist who is not the insured, and is not protected by the insurance policy. The third component is the motorist who caused the harm.
A third party insurance protects the insured against any claims of damages levied by a third-party.
Types of Third Party Insurance
- Bodily injury liability:– In simple words, if you are responsible for a car accident, a bodily injury liability will cover the medical expenses of casualties of the accident, excluding the insured.
In the case that the other driver requires physical rehabilitation as part of their recovery journey. Another possibility is that the accident victim income because he is unable to work or carry out his essential duties. Your bodily injury liability protection could assist in covering their damages in this situation.
- Property damage liability:- A property damage liability is coverage that pays when a driver causes damage to another person’s property in an accident. It can take the form of another car of any type of property. A property damage liability insurance provides aid in paying for repairs for damage done to another person’s property or vehicle.
If you are at fault for the contretemps, the policy does not cover impairment to your own vehicle.
Why Third Party Insurance is Important;
- The law requires it:
The Nigerian Insurance Act 2003 stipulates compulsory Third-party motor insurance in section 68 of the Insurance Act, 2003. According to this act, no person shall use, or cause or permit any other person to use a motor vehicle unless such a vehicle is insured against damage to the property of third parties.
It is therefore safe to say that third party insurance is compulsory for car-owners in Nigeria. According to the insurance law, it is required for drivers in Nigeria to carry at least third party auto insurance in order to cover other parties who may be involved in an accident.
– Accidents happen:
Car accidents continue to occur despite new developments in vehicle technology like backup cameras, adaptive headlights, and forward collision systems (FCS). Accidents may not yet have a rational cause or explanation, but one thing is for certain. Accidents are inevitable.
Most of traffic accidents are caused more by the driver’s actions than their knowledge of how to operate a vehicle. In fact, human error is at blame for over 94% of all traffic accidents.
Many motorists may eventually discover that they have engaged in some of the most typical behaviours that result in auto accidents. Distracted driving is one of the leading causes of motor accidents. Contrary to widespread belief, the brain is unable to concentrate on more than one job at once. This indicates that the brain is unable to maintain constant attention on what is ahead when a motorist is texting, chatting on the phone, grooming, reading, or even eating while driving.
AND THE LAST ONE;
– Everyone needs a backup:
You may never be able to predict when this sad incident would occur, even if you are the kindest driver you have ever encountered. And you’ll undoubtedly need backup when that moment comes. A third-party auto insurance policy gives you peace of mind in the event of a stressful or terrible circumstance that is expensive. Consequently, you will receive immediate stress relief and aid in dealing with the situation rather than worrying about these costs.
Why would you risk your safety against the hurly-burly of Lagos or the maladroitness of other drivers on any Nigerian street?
Our friend, Tade Bigston, a prominent Nigerian elite that belongs to the business class of the society. Last week, he upgraded his social status among his contemporaries further by acquiring the latest lavish Toyota vehicle. However, Bigston did not want to take any chances, especially given the chaotic nature of Lagos. So he took his friend’s advice and signed up for a third-party motor insurance coverage through Vtpass.
Bigston’s car collided with another vehicle on a fateful Monday morning, severely damaging the latter. He originally felt depressed at the prospect of having to fix the automobile. But his mood soon improved when he remembered that he had insurance for his vehicle.
The expenses of mechanics and vehicle artisans can be an unavoidable pain in uncomfortable places. However, motor accident expenses are avoidable when you get a third party motor vehicle cover on VTpass. That way you do not have to directly bear the cost accruing to accidents to your vehicle. Here’s How!
You’re not wishing for it, neither am I. But you can avoid the avoidable by simply purchasing/renewing your third party auto insurance on www.vtpass.com today .