Frequent question: Which insurance is compulsory in Nigeria?

In Nigeria, Third Party Motor Insurance has been made compulsory for all car owners by the Federal government. The Policy offers cover against the damage of another road user�s vehicle by the insured vehicle.

Which insurance is mandatory in Nigeria?

Motor third party insurance:

This insurance is compulsory for vehicle owners and drivers. It includes motorcycles and other types of commercial and private vehicles. The motor third party insurance is mandated by section (53) of the motor vehicle (third party insurance) Act of 1945.

How many types of insurance policy are made compulsory in Nigeria?

Did you know that there are seven compulsory Insurance policies in Nigeria? Yes, the Federal Government has made it compulsory for every individual and business in the country to be protected by a few insurance policies.

Which insurance is compulsory by law?

Why it is Compulsory to have Car Insurance in India. In India, and all over the world, getting your car insured is a compulsory by law, not an option. The Motor Vehicle Act of 1988 makes it mandatory for all vehicle to be covered under an appropriate insurance policy before they can ply on the road.

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What are the types of insurance in Nigeria?

Types of Insurance In Nigeria

  • Life Insurance or Personal Insurance.
  • Property Insurance.
  • Marine Insurance.
  • Fire Insurance.

Is life insurance compulsory in Nigeria?

Section 9(3) of the Pension Reform Act 2004 makes it compulsory for every employer of labour, with five employees or more, to maintain a life insurance policy in favour of the employee for a minimum of three times the annual total emolument of each employee.

How many insurance companies are there in Nigeria?

As of today, according to NAICOM, there are a total of 58 Insurance companies in Nigeria.

What is the important of insurance?

Insurance provide financial support and reduce uncertainties in business and human life. It provides safety and security against particular event. … Insurance provides a cover against any sudden loss. For example, in case of life insurance financial assistance is provided to the family of the insured on his death.

What are the principles of insurance?

In the insurance world there are six basic principles that must be met, ie insurable interest, Utmost good faith, proximate cause, indemnity, subrogation and contribution.

What are the three types of compulsory insurance?

Types of compulsory insurance

  • Unemployment Insurance Fund/UIF.
  • Road Accident Fund/RAF/Road Accident Beneficiary Scheme/RABS.
  • Compensation for Occupational Injuries and Diseases Fund/COIDA.

Which insurance is compulsory for bike?

Having third-party insurance is anyway compulsory for all vehicles as per the Motor Vehicles Act, 1988. If you have just bought a brand new scooter or bike and decided to go with basic third-party bike insurance, you will necessarily have to buy a 5 year insurance policy.

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What are the 4 types of insurance?

Different types of general insurance include motor insurance, health insurance, travel insurance, and home insurance.

What are the 5 types of insurance?

The Bottom Line

There are many types of insurance available, but there are some which top the charts in terms of importance. Home or property insurance, life insurance, disability insurance, health insurance, and automobile insurance are five types that everyone should have.

What are the 7 types of insurance?

7 Types of Insurance

  • Life Insurance or Personal Insurance.
  • Property Insurance.
  • Marine Insurance.
  • Fire Insurance.
  • Liability Insurance.
  • Guarantee Insurance.
  • Social Insurance.
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