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.

What is compulsory insurance in Nigeria?

Compulsory insurance in Nigeria is important because it secures the benefits of insurance to average citizens that wouldn’t normally benefit. Compulsory insurance focuses on protecting third-party workers by providing compensation in event of injury, property damage, or death during work.

What are the types of insurance in Nigeria?

Types of Insurance In Nigeria

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

What insurances are compulsory?

What Is Compulsory Insurance?

  • Compulsory insurance is insurance that must be legally owned to do an activity, such as auto insurance and driving a car.
  • Other types of compulsory insurance include workers’ compensation and professional liability insurance.

Is insurance mandatory in Nigeria?

There are certain insurance policies that the Federal Government of Nigeria has made compulsory for every individual and business in the country to obtain to protect the relevant third party in the event of death, bodily injury or property damage.

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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.

Is marine insurance compulsory in Nigeria?

Marine Insurance (Cargo)

Individuals and organisations that regularly engage the use of marine transportation are required to obtain marine insurance. It covers for losses that may occur as a result of marine adventures, from the use of vessels and yachts as a means of transportation.

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 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.

What are the 3 main types of insurance?

We begin with an overview of the types of insurance, from both a consumer and a business perspective. Then we examine in greater detail the three most important types of insurance: property, liability, and life.

What types of insurance are not required by law?

5 Types of Insurance You Don’t Need

  • Mortgage Life Insurance. There are some insurance agents that will try to convince you that you need mortgage life insurance. …
  • Identity Theft Insurance. …
  • Cancer Insurance. …
  • Payment protection on your credit card. …
  • Collision coverage on older cars.

What is the difference between compulsory and non compulsory insurance?

Compulsory insurance is a type of insurance that is required by law before you can engage in specific activities. … Non compulsory insurance is pretty much everything that you are not required to have, insurance such as travel insurance, life insurance, phone insurance, etc.

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While public liability insurance is generally voluntary, employers’ liability insurance is compulsory. You can be fined if you do not hold a current employers’ liability insurance policy which complies with the law.

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 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. The right to insure arising out of a financial relationship, between the insured to the insured and legally recognized.

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