BUSINESS

How Much is 3rd Party Car Insurance in Nigeria?

Published

1 year ago

How Much is 3rd Party Car Insurance in Nigeria?

If you’re a car owner in Nigeria, you’ve probably heard the term “3^rd party car insurance” thrown around quite a bit. But what exactly is it, and how much does it cost? These are common questions that bother every vehicle owner in Nigeria.

With the increasing importance of insurance coverage for vehicles, understanding the mechanism and cost of third-party car insurance has become crucial. You might be wondering: What factors influence the price of third-party car insurance? How does it compare to comprehensive coverage? Or if it is mandatory under Nigerian law? Luckily for you, you’ve landed on the right page to get the answers you seek. In this article, we will explore the mechanism, effects and benefits of 3^rd party insurance in Nigeria.

What is 3^rd Party Car Insurance?

Third-party car insurance is a type of vehicle insurance that covers you against claims made by someone else (the “third party”) for damage or injuries you cause. For example, if you have third-party car insurance and you accidentally damage someone else’s car in a collision, your insurance would help cover the cost of their car repairs. It’s basically a way to protect yourself from financial liabilities that arise from unintentional harm to others.

The third-party insurance policy is purchased by the insured (first party) from the insurance company (second party) for protection against the claims of another (third party). In most countries like Nigeria, third-party insurance is compulsory for all road users. Hence, it’s mandatory if you wish to drive a vehicle in the country.

How Much is 3rd Party Car Insurance in Nigeria?

Types of 3^rd Party Car Insurance

When it comes to third-party car insurance, there are two main types:

Bodily Injury Liability: This covers expenses related to injuries suffered by people in an accident. It includes things like hospital bills, lost wages, and compensation for pain and suffering.
Property Damage Liability: This type of insurance takes care of costs associated with damage to or loss of property, such as damage of the car or vehicle, or providing compensation for damaged parts of the vehicle.

In most cases, it’s mandatory by law to have third-party car insurance. For instance, drivers are generally required to have a minimum level of bodily injury liability and property damage liability coverage, but the specific requirements can vary from state to state. Some states might not require both types, or they may have different limitations. Each state or country may have its own minimum coverage requirements.

How Much is 3^rd Party Insurance in Nigeria?

The mandatory fee for third-party vehicle insurance in Nigeria has recently been raised by the Federal Government. The new amount to be paid by motorists has been increased from N5,000 to N15,000, marking a significant 200 percent rise. This change was approved on the 4^th of March, 2023. However, depending on the type of third party insurance, and the insurance company, the amount may vary slightly.

Is 3^rd Party Insurance Mandatory in Nigeria?

Yes, in Nigeria, every driver is required to have Third Party Insurance to legally drive on the roads. This insurance is the minimum requirement for all motorists in Nigeria. The main goal is to make sure that in case of an accident, other people involved receive fair compensation for any vehicle damage or injuries they may suffer.

Third-Party Car Insurance Claim Process

If you find yourself facing a third-party insurance claim, follow this step-by-step process:

Immediate Notification: Notify your insurance company as soon as the incident occurs and officially register your claim.
File a Police FIR: Document the details of the claim by filing a First Information Report (FIR) with the police. Be sure to retain a copy of the FIR, as you will need it when filing a claim with your insurance company.
Motor Accidents Claim Tribunal (MACT): The claim will be referred to the Motor Accidents Claim Tribunal (MACT), which will determine the amount you are liable to pay to the third party for their financial loss.
MACT Judgment: After the MACT passes its judgment, promptly inform your insurance company and proceed to file your third-party claim.
Insurance Company Compensation: Your insurance company will then handle the compensation process on your behalf.

To initiate a third-party claim, you must provide the following documents to your insurance company:

A completed and signed claim form.
A copy of your insurance policy.
A copy of the police FIR.
A copy of your driver’s license.
A copy of your proof of identity.
Any other relevant police reports, if applicable.

Benefits of Third-Party Car Insurance

Having third-party coverage for your car comes with several advantages:

It ensures you comply with the requirements of the Motor Vehicles Act, 1988, thus helping you avoid legal fines and penalties.
This coverage protects you from the risk of having your driving license suspended.
With consistent and affordable premiums across insurers, it offers financial predictability.
It provides a sense of financial security by taking care of any third-party claims through the policy.
In the event of an accident, it guarantees that you won’t have to personally pay for damages or injuries caused to others.
By covering expenses related to property damage and medical costs for others, it ensures comprehensive protection in case of an accident.
Third party car insurance also offers legal support if you find yourself facing a lawsuit as a consequence of the accident.

Bottom Line

Third-party car insurance in Nigeria is not just a legal requirement but also a valuable asset that provides essential financial protection for both drivers and third parties. By covering potential liabilities, such as property damage and medical expenses, third-party insurance ensures a level of security and peace of mind for all road users. Its affordability, compliance with legal regulations, and provision of comprehensive coverage make it an indispensable safeguard for anyone navigating Nigeria’s roads.

Frequently Asked Questions (FAQs)

What does third-party insurance cover in Nigeria?

Third-party insurance in Nigeria covers the insured’s liability for injuries, death, and damage to third-party property in case of accidents. It’s a mandatory insurance policy.

Who Are the Parties in Third-Party Insurance?

In an insurance policy, the first party is the person or business buying the insurance (the insured). The second party is the company providing the insurance (the insurer). The third party refers to an outside person or business making a claim for damages against the first party.

What Is the Difference Between First-Party and Third-Party Claims?

In a first-party claim, the insurance company directly pays the insured person or business. In a third-party claim, the payment goes to someone other than the insured or insurer, typically when the insured person is liable for damages. For example, if your homeowner’s insurance covers a roof repair, it’s a first-party claim. If it pays for someone’s medical bills after they slipped on your steps, it’s a third-party claim.

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BUSINESS

Adamawa Mortgage Bank Faces ₦10 Billion Lawsuit for Alleged Contract Breach with Wisdom Kwati Smart City

Published

2 weeks ago

Christopher

Wisdom Kwati Smart City Ltd, a prominent property development firm based in Abuja, has launched a lawsuit against Adamawa Mortgage Bank Ltd, seeking ₦10 billion in damages. The legal action follows a breach in a joint venture agreement between the two parties for a 20.5-hectare property development in Sangere Village, Yola South, Adamawa State.

Adamawa Mortgage Bank Faces ₦10 Billion Lawsuit for Alleged Contract Breach with Wisdom Kwati Smart City

The joint venture was established to transform the Sangere property into a large-scale residential development, with work already underway and over 3.5 billion invested in the construction of over 200 housing units and on the estate’s infrastructures. However, tensions arose when Adamawa Mortgage Bank publicly withdrew from the agreement, and without appropriate notice or engagement with the firm, released a statement on The Cable newspaper on November 9, 2024. In its announcement, the bank warned prospective buyers, stating:

“This is to inform the general public that Adamawa Mortgage Bank Ltd is not selling its land at Sangere-Wisdom Kwati Smart City. Anyone buying land at the property does so at his own risk. Take further notice that the bank has withdrawn from the joint venture agreement with Wisdom Kwati Smart City. Thank you. Signed Management.”

Following this statement, Wisdom Kwati Smart City Ltd, led by Chairman Mr. Wisdom Kwati, filed for both an interlocutory and interim injunction. The lawsuit names both Adamawa Mortgage Bank Ltd and its Managing Director, Dr. Noris Giscard Stanley, as defendants, alleging breach of contract and reputational harm caused by the bank’s public renouncement.

On November 14, 2024, the High Court of Justice of Adamawa State issued an interim injunction, temporarily restraining the mortgage bank from further actions related to the property until a resolution is reached. The court has ordered the defendants to respond to the claims and appear before the court within 30 days of receiving the summons.

The implications of the contract dispute are significant, given the current stage of the project. According to representatives of Wisdom Kwati Smart City Ltd, the company has invested over ₦3.5 billion in construction and developmental costs on over 200 buildings currently under construction at the site, of which over 50 units are at the finishing level of construction, and infrastructural development that are well into the third phase of the company’s five-phase development plan.

Industry observers suggest that a swift resolution of the dispute would be in the best interests of both parties and their investors, who rely on the stability of the joint venture to secure their investments. The project, originally designed to develop 317 mixed housing units, is already well past its midpoint, making it highly unreasonable for a partner to withdraw at this stage.

Wisdom Kwati Smart City Ltd has expressed a commitment to seeing the project through to completion and ensuring that stakeholders are kept informed of any significant developments in the case. Despite the legal steps taken, the real estate company has reportedly made several attempts to resolve the matter through dialogue, but the bank has reportedly not been forthcoming.

BANKING

Afreximbank Acts as Joint Lead Manager on Ecobank Transnational Incorporated’s USD 400mn Senior Unsecured Note Issuance

Published

1 month ago

Christopher

The proceeds of the note will fund general corporate purposes of the issuer, including refinancing of a USD350 million senior bridge-to-bond loan facility that was jointly coordinated by Afreximbank in March 2024.

African Export-Import Bank (“Afreximbank”) (www.Afreximbank.com) is pleased to announce that it has successfully acted as Joint Lead Manager and Bookrunner on a USD 400 million 10.125% Rule 144a/RegS senior unsecured note issuance by Ecobank Transnational Incorporated (“ETI”) due in October 2029.

The note issuance achieved peak orderbook oversubscription of 2.1x, backed by more than 70 high-quality and diverse investors comprising development finance institutions, asset managers, commercial banks and insurance companies from Africa, the UK, USA, Europe and the Middle East.

Professor Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, commenting on the transaction, said: “We are pleased to have supported Ecobank Transnational Incorporated (“ETI”) in placing the first public Eurobond issuance by any Sub-Saharan African financial institution since 2021, following our bridge financing support earlier in the year. This transaction underscores Afreximbank’s capacity and readiness to structure innovative market access solutions for our pan-African banking partners.”

Afreximbank’s Advisory and Capital Markets (ACMA) department acted as Joint Lead Manager and Bookrunner on the issuance, working alongside international and African partners.

Distributed by APO Group on behalf of Afreximbank.

BUSINESS

Japan: African Development Bank Celebrates Three Decades of Japan-Backed Trust Fund

Published

1 month ago

Christopher

Japan: African Development Bank Celebrates Three Decades of Japan-Backed Trust Fund

Over the past three decades, Japan has contributed JPY 5.3 billion ($ 37.4 million) to the PHRDG, supporting 107 projects, with 96 completed and 11 ongoing as of September 2024

The African Development Bank Group (www.AfDB.org) has celebrated the 30th anniversary of the Policy and Human Resource Development Grant (PHRDG), a bilateral trust fund created by Japan in 1994.The initiative has contributed significantly to the development of Africa’s human capital, supporting over 100 transformational projects across various sectors.

PRST at Keizai group

Presenting a commemorative publication on the trust fund at the Ministry of Finance in Tokyo on Wednesday, 16 October, Dr Akinwumi Adesina Adesina, African Development Bank Group President said the publication highlights three decades of successful collaboration and the impactful projects funded by the Policy and Human Resource Development Grant, as well as the critical role the grant has played in Africa’s socioeconomic development.

Over the past three decades, Japan has contributed JPY 5.3 billion ($ 37.4 million) to the PHRDG, supporting 107 projects, with 96 completed and 11 ongoing as of September 2024. In recent years, the trust fund has seen a notable increase in contributions, underscoring Japan’s renewed commitment to fostering a climate-smart, resilient, inclusive, and integrated Africa.

Japan’s Vice Minister of Finance for International Affairs, Atsushi Mimura, said he was pleased the country’s partnership with the African Development Bank Group was going well. He pledged continued support, particularly for the African Development Fund, the private sector, and Japanese and African start-ups

“We look forward to deepening Japan’s relationship with the African Development Bank,” he said.

Mimura described the African Development Bank Group’s partnership with the World Bank’s plan to bring electricity to 300 million Africans (Mission 300) as a powerful narrative that draws attention to the continent’s energy needs.

Adesina commended Japan for its strong support of the African Dev?

elopment Fund, noting that the Fund has delivered impressive results. He sought the country’s support on a wide range of issues, including the 17th general replenishment of the African Development Fund, Mission 300 (http://apo-opa.co/3YcTfy2), Special Drawing Rights, the private sector, and start-ups, among others.

“We thank the people of Japan for standing in solidarity with the people of Africa,” Adesina said.

Since its establishment, the PHRDG has been a vehicle for Japan to share its expertise and experience in human resource development, empowering Africans to lead the transformation of their societies and economies. The grant has supported a wide range of projects aligned with Japan and the African Development Bank Group’s shared objective of human capital development. Officials said the projects have laid the groundwork for accelerated economic growth in Africa.

In a foreword to the Policy and Human Resource Development Grant at 30 publication, Deputy Vice Minister of Finance for International Affairs Daiho Fujii, expressed Japan’s pride in celebrating the 30th anniversary of the PHRDG.

“Japan is leading the international community’s efforts to overcome global challenges, particularly those affecting vulnerable populations. Through the PHRDG, we provide technical cooperation to develop the human resources that will drive Africa’s socioeconomic transformation. Our partnership with the African Development Bank Group is key to realizing a more resilient and prosperous Africa.”

As the Policy and Human Resource Development Grant enters its fourth decade, the African Development Bank Group and Japan have expressed eagerness to expand their partnership. With six new projects in the 2024–2025 pipeline, including initiatives in higher education, debt management, and climate-smart agriculture, the trust fund remains a critical tool for delivering impact across Africa, officials said.

Both parties pledged to continue to work hand in hand to unlock the potential of Africa’s human capital, fostering innovation and economic development for generations to come.

Japan–Africa Dream Scholarship Program: Investing in the Future

Among the most impactful PHRDG-funded initiatives is the Japan-Africa Dream Scholarship Program (JADS), launched in 2017. This program aims to develop Africa’s human capital by offering scholarships to high-achieving African students for master’s studies in fields such as agriculture, development economics, energy, and public health. To date, the program has awarded scholarships to 23 students from 10 African countries, two-thirds of whom are women.

Graduates of the JADS program have gone on to make significant contributions to their home countries. Alumni include Mary Yeboah Asantewaa from Ghana, who now works at SORA Technology in Accra, leveraging drone technology to control infectious diseases, and Glory Sibale from Malawi, who joined Tokyo’s Taiyo-Yuka recycling company, focusing on sustainable agricultural project management.

As part of his mission to Japan, Adesina also met with Nobumitsu Hayashi, the Governor of the Japan Bank for International Cooperation, to expand collaboration in key areas, including agriculture, healthcare, energy access, support for youth entrepreneurs, critical minerals, and regional corridors.

Later Wednesday, Adesina met with the leadership of the Association of African Economic and Development Japan, where both parties discussed potential collaborations for impactful projects. He continued with meetings with Kanetsugu Mike, Chairman of Mitsubishi UFJ Financial Group, and Ken Shibuya, Co-Chairman of the Global South Africa Committee of Keizai Doyukai (Japan Association of Corporate Executives).

The African Development Bank president invited business leaders to the 2024 Africa Investment Forum to be held in Rabat in December. Adesina also hosted representatives of the African diplomatic corps, development partners, and the private and public sectors, where they discussed leveraging co-creative relationships with Japanese companies and institutions.

Distributed by APO Group on behalf of African Development Bank Group (AfDB).