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Health Insurance In Nigeria: Why You Need It



Health Insurance In Nigeria: Why You Need It


Recently, I came across a video of a Nigerian Actress; kemi Afolabi who has been critically ill for quite some years now. In fact I got to realise that she has been going through this illness for over two years. She affirmed that she has spent all of her business capital on the sickness, as well as her savings, noting that she spends one million Naira (1 million Naira) on treatment on a weekly basis (can you guess how much that will be for two years now). Yet she’s still very ill and now she needs to be taken abroad for medical treatment.


Mercy Aigbe in the video pleaded and I quote “This is a matter of emergency “. Meaning that when sickness comes, taking care of it becomes a matter of emergency so as to save the life of such an individual.  Also, I learnt that the only daughter of this woman is only but 11 years old( such a young age). Now imagine what will be the outcome of the 11 years old girl (God forbid) If anything happens to the mother; This is why it is important that every individual; be it rich or average, or poor, takes up a backup plan that will help insure the person’s health.

Sickness is not a friend to one’s body, and most times, it doesn’t give you notice before showing up. Unfortunately for humans, critical illness is not only for the Rich and abled individual…,it is even the poor that are more disadvantaged when these illnesses surface.

This article will be addressing the purpose of health insurance in Nigeria, and why every individual needs it!





Health Insurance refers to the type of insurance that provides cover for the costs of the Medical, Surgical, and hospital expenses of the person (people) insured. It is one of the form of life insurance that helps protect an individual’s health. Hence the insured is the sole owner(s) of the health insurance policy or coverage.

There are different types or groups of health insurance In Nigeria. They are explained below;





There are two main types of health insurance in Nigeria. They are;

  1. Private health insurance
  2. Public/government health insurance


PRIVATE HEALTH INSURANCE: This is the type of health insurance that is provided by private companies for individuals, families, or for a group of individuals in a common background or workspace (corporate). With this type of insurance, it is the private insurance company that determines the premium to be charged based on the health risk coverage of the insured.  In Nigeria, it is only but a few; especially the wealthy few, who has one form of private health insurance or the other. An example of a private health insurance provider is the Avon Healthcare (AVON HMO).



PUBLIC/GOVERNMENT HEALTH INSURANCE: In this type of health insurance, it is the government that provides healthcare plans for the masses in the state. With this type of health insurance, the government subsidises or reduce the cost of healthcare for the masses in exchange for a fixed regular low premium. The National Health Insurance Scheme(NHIS) is an example of the public health insurance in Nigeria.




The private organisation that offers health care insurance in Nigeria includes but are not limited to the following;


  • Enterprise Life Nigeria ( their IPP PLAN covers for critical illnesses)
  • Avon healthcare Insurance
  • AXA Mansard Health Insurance
  • Hygeia Health Insurance
  • Reliance HMO
  • Stanbic IBTC insurance
  • Leadway insurance health plan. …..amongst others.


Each and every of the above mentioned health insurance providers has their mode of operations, and the kinds of sicknesses or diseases covered will determine the premium to be charged.  Avon HMO for example; provides health insurance using these six plans below;


  1. Family health plan
  2. Individual health plan
  3. Couple’s health plan
  4. Sme and small groups health plan
  5. Companies and large groups health plan
  6. International health plan.



Now, the charge of premium for an individual health plan will be different from the family health plan which covers for everyone in a family or others. Reason being that the number of entities covered and the degree of health risk in a family can’t be compared with just an individual. In their plan, for an individual that opts for “Life starter plan”; the individual is required to pay a yearly premium of Twenty-Five Thousand (25k) Naira,  while for a family that opts for a  “Life plus plan” is expected to pay a yearly premium of Two Hundred and Two Thousand, Five Hundred(202,500) Naira. Can you then see the difference in figures? I’m well sure you can!


Also in each of these plans , they specified the treatments, Sicknesses and Surgeries covered. Of course,  it is not all the sicknesses that is covered in a plan. If you pick up a plan that covers ALL sicknesses, then you have to be ready to pay higher premiums. The reason it’s so, is so that the insurance company won’t be open to excess risks to avoid it leading to bankruptcy. This is why we noted in our previous article on “Types of Insurance In Nigeria, under the healthcare section, that the health insurance policies covered can either be generic or specific.


Hence as a policyholder who is picking up a plan , endeavour to ask the scope of health coverage the company includes in such a policy to be sure it’s what meet your needs as regarding healthcare. Please ask and never you assume that a particular health plan is supposed to cover all your health needs to avoid being disappointed later.


Another thing I will like to bring to our minds is the health insurance for groups of individuals,  or the corporate companies health insurance . This is mostly referred to HMO amongst other names,, and it is attached to our benefits in the workspace. It is as a result of this health plan which is given as additional benefits for working for an employer, that a good number of individuals has a form of healthcare plan in the country. But I will suggest that despite having this HMO in a company, endeavour to pick up a personal healthcare plan, as having an HMO doesn’t necessarily mean your health is covered for life.


Many individuals, especially the employees are at risk of losing their health insurance that was provided by the company they currently work for, in the event that you change your job or you lose your job. The company will automatically take away their healthcare benefits from you. This is why it is important that each individual has a personal health insurance cover even when your company gives you an HMO plan.





Generally, it is the wealthy who most times factors in health insurance. Reason being that they are mostly passionate about their health, hence they easily subscribe to any form of healthcare plans that will aid them live long and enjoy their wealth with their loved one’s.  While the poor die prematurely mostly due to bad health, and lack of access to unique and standard healthcare. The government in a bid to curb this; has initiated an insurance scheme that caters for the health of all Nigerians. This insurance scheme is called – National Health Insurance Scheme (NHIS).


The mission of the NHIS  is to mobilise and pool financial resources for strategic purchasing of affordable and quality healthcare for all Nigerians. The National Health Insurance Scheme has developed various programmes to cover the health of Nigerians in the different segments of the society. This is in a bid to ensure that Nigerians has access to good healthcare services. Hence as a citizen in the country, you have no excuse for not incorporating a form of healthcare plan in your life as you journey through.


Below are the different segments that the National Health Insurance covers ;


  1. The formal sector : This programme focuses on Individuals, Families, or corporate personnel in the formal sector and based on that provides social health insurance programmes that meets their needs.


  1. The Informal Sector: This programme focuses on individuals in the informal sector, and based on that provides health plans such as; “ Tertiary institution social health insurance plan, Community based social health insurance plans or programmes, and public private partnership social health insurance programmes.


  1. The Vulnerable Groups: This programme focuses on providing social health insurance plans for people who are either; pregnant, Children under the ages of five years, prison inmates, Retirees, or Aged individuals.


The National Health Insurance Scheme was established by the government to improve the health of all Nigerians at an affordable cost.



How Does The NHIS work?


In order to provide social health insurance in Nigeria, the National Health Insurance Scheme adopted 3 different groups as explained above. Now when you choose a desired programme, you as a participant will be required to contribute a fixed regular amount of money monthly or yearly. As you do this , when the need for a medical treatment is demanded at your registered hospital or in the event of a critical illnesses, the NHIS will then ensure to pay for the costs of the medical treatment by making available the funds to you. In some cases, if your health provider is registered with the scheme HMO, then the National health insurance schemes takes care of the medical fees, while you go and enjoy good health care services.


The National Health Insurance Scheme are able to pay for the participants medical bills from the pool of funds contributed by the various participants of this scheme.

Hence, the National health Insurance scheme is a prepayment plan, where the general participants of the scheme pays a certain fixed regular amount. These amounts are then collated, and it is from this collated amount that the Health Maintenance Organisation (HMOs) are paid for the health care services rendered to the citizens.

Hence, National Health Insurance Scheme is primarily a risky sharing arrangements which can improve resource mobilisation and equity.




The both types of health insurance explained above are good; be it private health insurance or public health insurance. However, if you are the type that prefers faster and efficient experience when getting your medical claims, It is advisable that you go for the private health insurance if your financial is above or between average, as you are likely to pay a bit higher premium here than in the public settings (most of the private health insurance policy are affordable when you budget your income efficiently). As this will provide prompt claim payment when the need arises. Also, most private health insurance providers have gone digital, thus there will be less paperwork as compared with the public health insurance.


In the event that your financials are a bit lower, by all means take up the public health insurance scheme. You will only need to keep tab of every documents necessary in receiving your claims , as well as make sure to follow up on your claim request doggedly, for fast results. Seeing that the number of people who might be making claims in a particular day might be greater than one. So in order to avoid number delay, have all of your health programmes records available and complete at all times when making a claim in the public health insurance scheme.





In the first paragraph of this article, we can all note that critical illness doesn’t respect persons. It can happen to anyone irrespective of our financial standing. All we can do is to pray and believe that God will never allow us suffer shame and dreadful sicknesses. After we have done that, we should by all means also put some plans in place that will help absorb any unpleasant experience as regarding our health concerns.


By subscribing to health care plan or policy, we are transferring the risk of paying heavily on medical bills and health expenses to the insurance companies. And in the event of of a critical illness or accident, we won’t be posted on the social platforms asking for alms to cater for the medical bills and treatments.


These days, the costs of treating dreadful diseases are so huge that you see people coming on the social platforms to seek for alms from masses. This then will mostly led to the masses being the decision maker whether you will remain alive by their prompt support, or that you won’t,  if they delay to provide the necessary support needed. No one wishes to be in this shoe.


Hence as you are living life and enjoying the good things of life, take up a plan or health policy today that will be there for you as a backup plan should you become critically ill in the future, to avoid becoming an object of topic for the masses when things don’t go well with our health. You are more than unique to be at the mercy of others before your health challenges can be restored. But the onus is on you now to do the needful as regarding your health both now, and in the future.


For example, Enterprising Life Nigeria, offers a maximum of (32.5 million Naira) Thirty Two Million, Five hundred Thousand Naira sum assured in the event of a critical illness of a policy holder. But trust me , despite this huge amount of sum assured, some sicknesses will swallow this amount and still demand for  more before the individual’s health is restored. And sometimes as well, this amount will solve the medical fees and an individual will still have more to cater for other immediate needs.


Now imagine  what an individual would have done for him or herself by picking up a policy that caters for critical illnesses and dreadful diseases. Of course the persons prestige won’t be affected when an unpleasant event occurs to attack his or her health. The sum assured will at least solve some major problems and little or no help will be needed afterwards.





  1. Take up as many health policy you can get. Of course you can insure your life in different multiple times and place. They will all be paid when something unpleasant happens to our health, and we need the heavy medication fees  sorted fast.
  2. Make sure to exercise often
  3. Eat healthy food at all times
  4. Reduce or avoid excessive alcohol intake
  5. Avoid inhaling smoke, do not smoke or use tobacco
  6. Try to trim your weight if you are overweight
  7. Adopt a lifestyle of resting once per week
  8. Protect yourself from transmittable diseases
  9. Watch your blood pressure – avoid it being too high or too low
  10. Always check your cholesterol level
  11. Avoid excess sugar intake
  12. Go for screenings as often as possible from age 30.
  13. Eat more of live food…vegetables, fruits, (Practice vegetarian)
  14. Enjoy good laughter
  15. Visit your health provider anytime you feel sick






There are different health provider organisation, some are common while some are yet to gain full popularity in the country. They include the following;



  1. HEALTH MAINTENANCE ORGANISATION(HMO): This is common in Nigeria. When you have this health benefits, the doctors you can see for medical treatment and consultations are those strictly registered in the HMO network. Hence you are limited to getting health services from the list provided here.


  1. PREFERRED PROVIDER ORGANISATION (PPO): With this organisation, an individual has a considerably amount of freedom to choose his/ her Preferred health care provider more than in the HMO settings.



  1. EXCLUSIVE PROVIDER ORGANISATION(EPO): With this organisation, an individual also, has a moderate amount of freedom to choose his/her exclusive health care provider.


  1. POINT OF SERVICE PLAN(POS): This incorporates features of the HMO, and the PPO – hence with this health plan, you have more freedom to choose your health care provider than any of the single organisation.




Our health is our wealth – if you lose your health to diseases or critical illnesses, you will automatically lose your wealth in the course of correcting that. Hence it is important that we protect our health at all times. And while we do that, also it is paramount that we ensure that plans are put in place that will aid us when an unpleasant event occurs that might terribly affect our health.

Take up a health plan from either a private health insurance company, or sign up with the National Health Insurance Scheme (NHIS), even as you practice the tips given for healthy living. Whatever you do…Always choose health first!


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




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.


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.


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:

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. Cybersecurity Breach: Information technology system malfunctions, cyberattacks, or data breaches can impair critical data, interrupt the flow of products and services, and offerings.
  7. Quality Control Issues: Recalls, manufacturing halts, and supply chain interruptions may result from issues with product quality, safety, or compliance.
  8. 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.


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:

  1. 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.
  2. 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.
  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. 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.


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

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. 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.
  8. 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.
  9. 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.


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

  1. 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.
  2. 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.
  3. 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.
  4. Contingency Planning: To handle and minimize supply chain interruptions, create and update backup suppliers, logistics routes, and alternate sourcing choices.
  5. 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.
  6. 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.
  7. 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.
  8. 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.
  9. 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.
  10. 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.


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.

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Vehicle Insurance: Everything You Need To Know




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.

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:

  1. Vehicle Type: Determine the type of vehicle you need to insure.
  2. Usage Patterns: Assess how you use your vehicle on a daily basis.
  3. Age Factor: If you’re a young driver, take that into account.
  4. Family Considerations: Consider whether you drive as part of a family.
  5. 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:

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


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) 

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.

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.

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.

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.

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.

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How Much is Car Insurance in Nigeria 2024?



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.

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:

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


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)

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.

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.

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.

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