INSURANCE

Common Budgeting Mistakes You Cannot Afford To Make

Published

1 year ago

Common Budgeting Mistakes You Cannot Afford To Make

Many people attempt budgeting, but most of them fail due to common mistakes made. As a result, to ensure you are successful in your budgeting efforts, it is essential to identify and avoid the frequent pitfalls that can derail your budgeting journey. Budgeting is like walking a tightrope – if you take the right steps you can stay balanced and reach the other side, but if you make one misstep you can easily fall off. Taking the time to understand potential mistakes so that you can avoid them is the key to success.

What is Budgeting?

Budgeting is the activity of planning how much money you will spend over a period of time. It involves setting a limit for each expense category, such as housing, food, and entertainment. It also involves tracking your income and expenses to make sure you are staying within your budget. Budgeting allows you to be in control of your finances and helps you reach your financial goals. For instance, if you have set a goal of saving 100 naira a month, you can use budgeting to monitor your spending and make sure that you are allocating enough money to your savings to reach your goal.

Common Budgeting Mistakes

If you have been wondering why you have not been able to stick to a budget, it is probably because you have been doing some things wrong. There are several common mistakes people make when trying to budget, such as not setting realistic goals, not tracking their spending, not accounting for unexpected expenses, and not having an emergency fund. These mistakes can make it difficult to stick to a budget, so it is important to make sure to avoid them.

Not tracking your spending:

Without tracking where your money is going, it is difficult to make sure that you are not overspending. It will also be impossible to hold yourself accountable and make sure that you stick to your budget. For example, tracking expenses can help you identify areas where you could be saving money, such as reducing spending on eating out or cutting down on subscription services. To optimize your budget and financial health, it is important to keep detailed records of where your money is spent.

Not writing your budget:
Without writing down your budget, it is hard to know where your money should be going, and it is difficult to identify opportunities for saving money. Without detailed records, it can be easy to lose track of expenses and miss out on potential savings. Writing down your budget helps you to keep track of your spending and identify any areas where you may be overspending. It also allows you to identify areas where you can reduce spending and save money. Additionally, tracking your spending can help you set realistic financial goals and plan for the future. So even if you have a good memory, you still need to write your budget down. Good memory or not, if you want to save money, you better write it down!
Setting unrealistic budgeting goals:
Unrealistic budgeting goals will make you unable to achieve your goals. When you set overly ambitious budgeting goals, you give yourself an unrealistic timeline and expectations which can lead to disappointment and frustration when you don’t meet them. On the other hand, setting achievable goals gives you a sense of accomplishment and the motivation to keep going. Additionally, when you set realistic budgeting goals, you can use the momentum of small successes to build up to bigger goals. As you reach your short-term goals, you can use that momentum to reach your long-term goals. Unrealistic goals, on the other hand, can be disappointing and discouraging, making it hard to stay motivated.
Not planning for emergency expenses:
A budget without factoring in emergency expenses will likely not be achieved. Unexpected expenses can arise at any time, and if you don’t plan for them, it can throw your budget off-balance and derail your progress. This is like building a ship and sailing it without a lifeboat. Unexpected events can quickly lead to disaster if you are not prepared, and a budget is no different. Without planning for emergency expenses, it’s difficult to stay afloat in a sea of financial uncertainty. It is therefore important to set aside some money each month to handle emergency expenses so that you can stay on track with your budget.
Forgetting to plan for fun expenses:
If you forget to add money for fun, you will still have fun. It will just derail your budgeting progress. Making room for fun expenses in your budget can help you stay on track with your other financial goals. Without it, you may find yourself spending more money than you had planned on things like concerts, restaurants, and vacations. This can cause you to become overwhelmed and stressed, which can lead to you overspending in other areas and completely throwing off your budget.

Budgeting is quite easy. However, little mistakes can derail your budget. This is why you need to avoid these mistakes. Budgeting is like sailing a boat. You may know the basics, but without carefully accounting for the wind, currents, and waves, you can easily find yourself off course. Little mistakes can have a big impact and keeping a close eye on your progress is essential to reaching your destination.

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BANKING

The Impact of Supply Chain Disruption on Business Operations and Financial Performance

Published

1 year ago

softchris4ol

The Impact of Supply Chain Disruption on Business Operations and Financial Performance

Supply chain disruptions are very commonplace in today’s interconnected global economy, affecting organizations in a variety of industries. These interruptions may have far-reaching effects on a company’s financial performance in addition to its commercial operations. In addition to offering techniques to reduce the risks involved, this article seeks to give readers a thorough grasp of how supply chain interruptions affect corporate operations and financial performance.

MEANING OF SUPPLY CHAIN DISRUPTIONS

Any incident or event that prevents information, services, or items from smoothly flowing through the supply chain network is referred to as a supply chain disruption.

It describes any situation or incident that stops the movement of products, services, or data inside a network of supply chains. These interruptions may happen at any time during the supply chain, from suppliers of raw materials to final consumers, and can lead to disruptions, shortages, higher expenses, and eventually affect the chain’s overall effectiveness and performance.

Disruptions to the supply chain can be divided into two categories: internal disruptions that occur within the company and external interruptions that occur outside the company.

The Impact of Supply Chain Disruption on Business Operations and Financial Performance

TYPES OF SUPPLY CHAIN DISRUPTION

Disruptions to the supply chain can come from a variety of sources and take many different shapes. Typical forms of supply chain disruptions include the following:

Natural Disasters: Incidents like hurricanes, floods, tsunamis, and wildfires can cause damage to transportation networks, destroy infrastructure, and force the closure of manufacturing and distribution facilities.
Geopolitical Events: The movement may be impacted by trade disputes, tariffs, sanctions, war, terrorism, political instability, and changes in governmental policy. moving commodities across international borders, sour commercial ties, and cause bottlenecks in the supply chain.
Supplier Issues: Delays in the delivery of components or raw materials might result from issues with suppliers, such as bankruptcy or sudden changes in production capacity.
Transportation Disruptions: The supply chain as a whole may be impacted by delays in the delivery of goods caused by strikes, fuel shortages, accidents, port congestion, and other transportation-related problems.
Demand Surges or Drops: Unexpected fluctuations in customer demand, such as sudden increases in orders or decreases in sales, can result in mismatches between supply and demand, which can cause delays in manufacturing and delivery.
Cybersecurity Breach: Information technology system malfunctions, cyberattacks, or data breaches can impair critical data, interrupt the flow of products and services, and offerings.
Quality Control Issues: Recalls, manufacturing halts, and supply chain interruptions may result from issues with product quality, safety, or compliance.
Pandemics and Health Crises: Situations like the COVID-19 pandemic can result in worker shortages, manufacturing closures, travel restrictions, and interruptions to international supply chains.

IMPACT ON BUSINESS OPERATIONS

Disruptions to the supply chain can have a big effect on how businesses operate, impacting many different parts of what they do. Among these effects are the following:

Production Delays: Supply chain disruptions may cause delays in the delivery of components, finished goods, or raw materials, which may cause production to halt or slow down. This may affect a business’s capacity to reach production goals and promptly complete orders from customers.
Increased Costs: Expenses associated with carrying excess inventory, accelerating shipments, finding alternate suppliers, and putting emergency plans in place can all rise as a result of supply chain interruptions. These extra costs have the potential to weaken profit margins and lower overall financial performance.

Customer Dissatisfaction: Customers may become dissatisfied and lose faith in the business as a result of delays in the delivery of goods or services. Customer loyalty and the company’s reputation may suffer as a result.
Inventory Management Problems: Disruptions in the supply chain may result in inventory levels that are out of balance, with an abundance of certain commodities and a deficiency of others. This may result in ineffective inventory management, a lockup in working capital, and higher carrying costs.
Operational Disruptions: When important vendors or partners in logistics are unable to deliver merchandise services as anticipated, it may cause daily operations of a business to be disrupted, affecting departmental productivity and efficiency.
Risk of Loss of Market Share: Prolonged supply chain interruptions increase the likelihood that a company may miss out on sales opportunities, lose market share, and experience other negative effects. Those with more dependable supply chains could have an advantage over rivals.
Legal and Regulatory Issues: When a supply chain is disrupted, there may be legal repercussions, including breaking contracts, missing deadlines, and breaking rules. Legal issues, fines, and reputational harm to a business may arise from this.
Long-term Business Impact: A company’s financial performance, competitive position, and general viability may all be negatively impacted by protracted or severe supply chain disruptions. It might impair the business’s capacity to sustain connections with clients, vendors, and other business associates.
Communication and Collaboration Challenges: Interruptions can make it difficult for supply chain participants to coordinate, make decisions, and solve problems. Both efficient crisis management and general operational efficacy may be hampered by this.

IMPACT ON FINANCE PERFORMANCE

A company’s financial performance can be significantly impacted by supply chain disruption in a number of ways, including:

Increased Expenses: Supply chain interruptions frequently result in greater expenses for items like faster shipment, purchasing from more expensive alternative suppliers, keeping extra inventory on hand, or putting emergency preparations in place. The company’s profitability may be directly impacted by these added expenses.
Revenue Loss: Supply chain disruptions may cause delays in completing client orders, which may result in a potential loss of revenue because lost chances to close deals. If there are delays or product shortages, customers can also look for other suppliers, which would mean fewer sales for the business.
Inventory Write-offs: When there are disruptions in the supply chain, inventory levels might become unbalanced, with certain items having excess stock and others lacking. As unsold or outdated inventory builds up and negatively affects the company’s financial condition, this may lead to inventory write-offs.
Contractual Penalties and Legal Expenses: If supply chain disruptions cause a party to miss contractual obligations, there may be penalties and legal expenses. Conflicts involving partners, suppliers, or customers may lead to legal action and more expenses.
Long-Term Financial Impact: Extended or severe disruptions to the supply chain may have a long-term effect on the financial performance of the business, limiting its capacity to produce revenue and sustain long-term profitability. Stock performance and investor confidence may potentially be impacted by this.
Working Capital Restraints: In order to minimize disruptions caused by supply chain disruptions, the business may need to store excess inventory or pay in advance for faster transportation. Money that may have been spent for other company endeavors is diverted by this.
Business Continuity Costs: In order to avoid or lessen supply chain interruptions, businesses may need to make investments in business continuity and risk management techniques. These costs can have an adverse effect on their bottom line.
Stock Market Reaction: When businesses see significant interruptions in their supply chains, investors may react negatively, which could lead to a drop in stock prices. The market capitalization of the company could be impacted if investors lose faith in its capacity to handle risks.
Legal and Regulatory Repercussions: Disruptions to the supply chain may result in legal and regulatory repercussions, such as breaking contracts or neglecting to fulfill duties to customers. A company’s reputation and financial performance can be severely impacted by lawsuits, fines, penalties, and compliance expenses.

STRATEGIES FOR MITIGATION

Businesses can handle supply chain disruption and reduce its impact on operations and financial performance by implementing a number of mitigation techniques, such as:

Diversify Your Supplier Base: Dependence on only one source might make disruptions more likely. Increasing the variety of suppliers helps lessen the effect of interruptions from a particular source.
Supply Chain Insight: Put in place systems and technology that offer real-time insight into every aspect of the supply chain, including transportation, production status, and inventory levels. This visibility aids in identifying anticipate possible problems and make proactive mitigation strategies possible.
Risk Assessment and Management: Perform thorough risk analyses of the supply chain to find possible weak points and put risk management plans in place to lessen their effects.
Contingency Planning: To handle and minimize supply chain interruptions, create and update backup suppliers, logistics routes, and alternate sourcing choices.
Cooperation and Communication: Create effective channels for cooperation and communication with consumers, logistical partners, and suppliers. Having solid connections and open channels of communication will make it easier to deal with interruptions in a cooperative and efficient manner.
Inventory Management: Use agile inventory management techniques to balance supply and demand, keep ideal inventory levels, and lessen the effects of shortages and surpluses brought on by disruptions.
Adoption of Technology: Invest in Supply chain resilience and agility can be improved by utilizing technology like blockchain, supply chain management systems, and predictive analytics.
Financial Risk Management: To lessen any financial effects, assess your exposure to financial risk as it relates to supply chain interruptions and take into account risk transfer strategies such supply chain insurance.
Technology Adoption: Supply chain visibility, traceability, and control can be improved by utilizing cutting-edge technologies like blockchain, data analytics, automation, artificial intelligence, and the Internet of Things (IoT). By facilitating real-time monitoring, predictive analytics, and prompt decision-making, these technologies improve resilience and lessen the effects of disruptions.
Scenario Planning: Create and maintain scenario plans that take into account a range of possible interruptions and how they can affect financial performance and business operations.

CONCLUSION

Disruptions in the supply chain significantly affect financial results and commercial operations. Companies need to proactively identify risks, improve teamwork, use technology, and create strong contingency plans in order to successfully traverse these issues. Businesses may reduce the effects of disruptions, enhance financial performance, and preserve a competitive edge in the complex and unpredictable business world of today by putting these mitigation techniques into practice.

ECONOMY

Vehicle Insurance: Everything You Need To Know

Published

1 year ago

softchris4ol

Vehicle Insurance: Everything You Need To Know

Getting behind the wheel is a daily necessity for many of us, but it comes with its fair share of uncertainties. Accidents, theft, and unforeseen mishaps are part and parcel of the road. That’s where vehicle insurance steps in as your trusted safeguard.

In this comprehensive guide, we’ll walk you through everything you need to know about vehicle insurance, from the basics to the finer points, so you can hit the road with confidence and peace of mind.

What is Vehicle Insurance?

Vehicle insurance, also known as auto insurance or car insurance, is a contractual agreement between an individual (the policyholder) and an insurance company. It is designed to provide financial protection in the event of accidents, theft, damage, or other unforeseen incidents involving a motor vehicle.

In exchange for regular premium payments, the insurance company agrees to cover the costs associated with repairing or replacing the insured vehicle and potentially covering medical expenses or liabilities resulting from accidents. The specific coverage and terms of a vehicle insurance policy can vary, but it generally helps protect individuals from unexpected financial burdens related to their vehicles.

Vehicle Insurance: Everything You Need To Know

Types of Vehicle Insurance

Here are the most common types of vehicle insurance:

Comprehensive Insurance

Comprehensive insurance is the most extensive coverage you can have. It not only includes protection for third-party loss and damage but also covers you, your vehicle, and others involved in an accident. This policy covers everything in a third-party fire and theft policy, and additionally, it safeguards you as a driver. It may provide compensation for medical treatment, legal expenses, accidental damage, repairs after an accident, accidental damage, and even vandalism. However, note that driving other people’s cars under this policy usually offers no more than third-party cover. Despite its comprehensive coverage, it may not be the most expensive option.

Third-Party Insurance

Third-party insurance is the basic and mandatory coverage that protects you from damages and losses caused to a third party, excluding coverage for your own vehicle. Despite being the minimum legal requirement, it may not necessarily be the cheapest option. This type of insurance covers the costs of injury or damage you cause to others or their property. However, it does not provide any protection for your own car in case of damage or theft. It might be suitable for those who find comprehensive insurance less affordable. Third-party insurance covers damage to someone else’s property, injury caused to others, and injury to your passengers during an accident. It does not cover you or your car.

Collision Insurance

Collision insurance specifically covers accidents or damages to your vehicle resulting from a collision, typically when it’s your fault. This coverage takes care of repairing or replacing your vehicle, regardless of who is at fault. It provides protection in situations where your vehicle collides with another vehicle or object like a tree or pole.

Why You Need Vehicle Insurance?

Car insurance is essential for providing financial protection in the unfortunate event of an accident. Beyond safeguarding you, certain types of insurance also extend coverage to claims arising from injuries to other individuals. If you own a roadworthy car, it is a legal requirement to have at least a basic level of coverage, commonly known as third-party insurance, even if you don’t actively drive the vehicle. The sole exception is if you officially declare your car as off the road by obtaining a Statutory Off Road Notification (SORN).

Driving without insurance carries serious consequences, including fines and a minimum of six points on your license. In more severe cases, it may lead to disqualification from driving, and there is even the possibility of having your car confiscated. Ensuring proper car insurance is not just a legal obligation but a crucial means of securing yourself and others on the road.

How to Cancel Your Vehicle Insurance

If you wish to cancel your vehicle insurance, you can request your insurer to do so at any time. However, it’s important to note a few key considerations:

1. Maintain Valid Insurance

Ensure you have alternative valid insurance if you intend to continue using your car. Canceling your current policy doesn’t exempt you from the legal requirement of having insurance coverage on the road.

2. No-Claims Bonus Impact

If you cancel your policy midway through the current year, you may not be eligible for the no-claims bonus for that year.

3. Cancellation Charges

Typically, cancellation incurs charges unless it aligns with your policy renewal. Be prepared to cover cancellation fees unless you’re at the renewal stage.

4. Refund for Upfront Payments

If you’ve paid upfront and haven’t filed any claims, you can expect a refund for the remaining months, minus the applicable cancellation fees. This ensures you receive a fair reimbursement for the unused portion of your insurance.

How to Choose the Right Vehicle Insurance

Selecting the right vehicle insurance involves considering various factors and posing essential questions:

Vehicle Type: Determine the type of vehicle you need to insure.
Usage Patterns: Assess how you use your vehicle on a daily basis.
Age Factor: If you’re a young driver, take that into account.
Family Considerations: Consider whether you drive as part of a family.
Travel Distance: Evaluate the distances you typically cover.

Add-ons You Can Include to Your Insurance Policy

Enhance your car insurance by adding these optional features for an extra cost:

Breakdown Cover: Avoid being stranded if your car breaks down.
Personal Accident Cover: Get compensation for serious injuries or fatalities in a car accident.
Motor Legal Protection: Cover expenses for legal actions after an accident.
Courtesy Car Cover: Receive a temporary car after an accident until yours is repaired.
No Claims Discount Protection: Safeguard your discount and save on insurance costs.
Windscreen Cover: Check if your comprehensive policy includes this, as replacing a windscreen can be pricey.
Lost Keys Cover: Protect yourself from the expenses of replacing lost or stolen electronic car keys.

Conclusion

Understanding vehicle insurance is essential for every driver. Whether you opt for comprehensive coverage, third-party insurance, or collision insurance, the goal is to protect yourself, your vehicle, and others on the road. Not only is car insurance a legal requirement, but it also acts as a financial safety net in case of accidents or unforeseen events. Remember, driving without insurance can lead to serious consequences, including fines, points on your license, and even disqualification from driving. It’s not just a legal obligation; it’s a crucial step in ensuring responsible and secure driving. Drive responsibly, stay insured, and enjoy the peace of mind that comes with knowing you’re covered on the road.

Frequently Asked Questions (FAQs)

What factors influence the cost of car insurance?

Car insurance costs are influenced by factors such as your driving history, age, type of coverage, vehicle make and model, and even your credit score.

Is it necessary to have car insurance?

In most places, having car insurance is a legal requirement. It provides financial protection for both you and others in the event of an accident.

How does the deductible work in car insurance?

The deductible is the amount you pay out of pocket before your insurance kicks in. Choosing a higher deductible often lowers your premium but means you’ll pay more in the event of a claim.

Can I switch car insurance providers mid-policy?

Yes, you can switch providers before your policy expires. However, it’s essential to consider any potential penalties or fees and ensure continuous coverage during the transition.

What is the difference between comprehensive and collision coverage?

Collision coverage pays for damage to your car in an accident, while comprehensive coverage protects against non-collision events like theft, vandalism, or natural disasters. Both are optional but provide additional protection.

INSURANCE

How Much is Car Insurance in Nigeria 2024?

Published

1 year ago

softchris4ol

How Much is Car Insurance in Nigeria 2024?

Curious about car insurance in Nigeria for 2024? It’s a crucial protection for drivers, ensuring both the vehicle and road users are covered. In many countries, Nigeria included, having car insurance is a must to hit the road: “How much is car insurance in Nigeria 2024?.”

As we step into 2024, you might be wondering about the cost and the best policy. Good news – we’ve got the info you need! This article covers everything about car insurance in Nigeria, from costs to types and coverage plans. We’ll also guide you on choosing the right insurance for your car and how to switch plans if needed.

What is Car Insurance?

Car insurance is a financial protection plan for drivers, covering the costs associated with damage to the vehicle or injuries caused to others in case of accidents. It’s a mandatory requirement in many countries, serving to safeguard both the driver and other road users. If unexpected bumps or accidents happen, having car insurance can help cover the costs of repairs and medical expenses.

In simpler terms, car insurance is an agreement between you and the insurance company, to cover the costs if your car gets damaged or if you’re involved in an accident. Typically, you pay a premium, and in return, the insurance company helps cover the repair costs, medical expenses, or even replacement in case of a total loss. It’s like having a backup plan for unexpected mishaps on the road, giving you peace of mind while you drive.

How Much is Car Insurance in Nigeria 2024?

Types of Car Insurance in Nigeria

There are different types of car insurance, and each, has it’s own level of coverage and cost. They include:

Third-Party Car Insurance

Third-Party Insurance also known as Basic insurance typically refers to the essential coverage required by law. In Nigeria, this is the fundamental protection every vehicle owner must have. It ensures that if your car causes damage to other people’s property or injuries to individuals, the financial responsibility is covered by the insurance. While it doesn’t extend to your own vehicle, Basic Insurance serves as a legal and financial safeguard, preventing you from facing the full brunt of liabilities in case of an accident. It’s the starting point for responsible driving, ensuring compliance with legal requirements on the roads.

Comprehensive Car Insurance

Comprehensive Insurance is like a full protective armor for your vehicle in Nigeria. Unlike basic coverage, it not only handles third-party liabilities but also protects your own car. It covers the cost for a variety of scenarios, including theft, fire, and even non-collision incidents. Essentially, it’s your go-to plan for a wide range of unexpected events that can befall your vehicle. While comprehensive insurance is not mandatory, it provides peace of mind by ensuring that your car is financially shielded against a broader spectrum of risks. Whether it’s a broken windshield or a stolen vehicle, Comprehensive Insurance has your back, making it a wise choice for those wanting extensive coverage.

Collision Insurance

Collision Insurance specifically covers the repair or replacement costs of your car if it’s damaged in a collision, regardless of who is at fault. Picture it as a safety net for those unfortunate moments when your car meets an unexpected obstacle. While it may not be mandatory like third-party coverage, having Collision Insurance ensures that your vehicle is financially looked after in the aftermath of a collision, helping you get back on the road without bearing the full financial brunt of repairs.

Personal Injury Protection (PIP)

Personal Injury Protection, or PIP, is your vehicle’s medical guardian. This type of insurance goes beyond the car itself, covering medical expenses for you and your passengers, regardless of who caused the accident. It acts as a safety net, ensuring that medical bills don’t become an additional burden in the aftermath of a collision. PIP is particularly valuable in a country like Nigeria, providing financial support for necessary medical treatments, rehabilitation, and even lost wages. While not mandatory in all regions, opting for PIP is a wise decision to prioritize the well-being of both you and your passengers on the road.

Cost of Car Insurance in Nigeria

The cost of car insurance in Nigeria can vary widely based on several factors. These factors include the type of coverage, the make and model of the car, the driver’s age and driving history, as well as the insurance company’s policies.

Starting from January 1, 2023, the Nigerian government has raised the premium rates for compulsory third-party vehicle insurance significantly. Private vehicle owners will now pay N15,000, a 200% increase from the previous N5,000.

As of now, these are the stipulated premiums on all vehicles and automobiles:

Private cars – N15,000 premium for a 3 million Naira claim.
Owned goods vehicles – N20,000 premium for a 5 million Naira Claim.
Staff Buses – N20,000 premium for a 3 million Naira Claim.
Tricycles (Keke) – N5,000 premium for 1 million Naira claim.
Special types – N20,000 premium for a 3 million Naira claim.

NOTE: “Special types” are vehicles such as cranes or forklift trucks that aren’t easily spotted on the road but are used for unique commercial purposes.

How to Choose the Right Car Insurance

Choosing the right vehicle insurance is important, and you can do it by thinking about a few key things:

Type of Vehicle: Figure out what kind of vehicle you want to insure.
How You Use Your Vehicle: Think about how you use your vehicle every day.
Your Age: If you’re a young driver, keep that in mind.
Family Situation: Consider if you’re part of a family that shares the vehicle.
How Far You Travel: Look at the distances you usually travel.

Conclusion

Choosing the right car insurance is not just a legal requirement but a strategic decision to ensure financial protection in the event of unforeseen circumstances. As we step into 2024, drivers in Nigeria are encouraged to carefully evaluate their options, considering the specific needs of their vehicles and lifestyles. The recent adjustments in premium rates set by the Nigerian government shows the importance of staying informed about the latest developments in car insurance costs. Remember, the cost of insurance is an investment made to safeguard you against the unexpected.

Frequently Asked Questions (FAQs)

Is fully comprehensive car insurance worth it?

If your car isn’t worth much, opting for third-party motor insurance can save you money. It’s the minimum coverage required by law.

What is third-party insurance in Nigeria?

Third-party insurance in Nigeria covers your liability for injury, death, or damage to a third party’s property in an accident. It’s a mandatory insurance policy.

Does third-party insurance cover my car?

Third-Party Property Damage cover shields you from costs if your car damages someone else’s property. However, it doesn’t cover any damage your own vehicle might suffer in accidents or other insured events.