4 Things That Could Be Covered By Liability Insurance

The primary reason I started this informational site was because of the ignorance about car insurance in Nigeria. We pay for third party insurance but we do not use it. Most people do not know what their third party liability covers. So, here are the 4 things that could be covered by liability insurance

Damage To Anyone’s Car

Accident is a common site in Lagos. When you hit someone’s car, you get out of the vehicle and evaluate the damage. If it’s a minor scratch, you get out your towel and put some engine oil on it, then buff out the damage. You then say sorry and be on your way. However, if the damage is huge, you, the victim and pedestrians would gather around the vehicle. Then, you argue about who is at fault and how the car will be fixed. But, what you keep failing to understand is that your 3rd party liability insurance would cover any damage done to anyone’s car. As long as you have a valid insurance, when next you hit someone’s car, stop begging and start using the insurance to protect yourself.

Damage To Anyone’s Property

Third party liability insurance also covers other physical properties other than cars. If you use your vehicle to damage someone’s property the insurance company would pay to settle the loss. It should be noted that the total settlement will not exceed the applicable limit of liability as stated in your policy schedule.

Death Or Injury To Third Party

No one prays for death but death is inevitable. With death comes funeral and other expenses. If you are involved in an accident and you are at fault, the insurance would cover injury or death of the third party. In the event of death or injury involving compensation to more than one third-party, the total settlement will not exceed the applicable limit of liability as stated in your policy schedule.

In the case of death of third-party, the insurance company would settle the personal representatives to the tune of the agreed amount but not exceeding applicable limit of liability.

Defense Costs

In the event of an accident, a victim or it’s family may decide to sue you for damages. If that happens, the insurance company could at their own discretion, pay reasonable legal costs and or expenses to defend or represent you. This can happen either at a fatal accident inquiry or in a criminal proceedings arising out of the accident. The insurance company probably would only do that if they believe they can win. However, you would need their written request to proceed.

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