Cornerstone Insurance Insight: Understanding benefits of Third-Party Motor Insurance

Motor accidents can leave victims facing unexpected medical expenses, damaged property and, in the worst cases, the loss of loved ones. Third-Party Motor Insurance provides a financial safety net by ensuring that people affected by road accidents can receive compensation for losses covered by the policy.

Cornerstone Insurance Plc is highlighting the importance of this compulsory insurance cover, encouraging motorists to look beyond regulatory compliance and recognise its role in protecting accident victims and promoting responsible driving.

The Managing Director/Chief Executive Officer of Cornerstone Insurance Plc, Stephen Alangbo, said Third-Party Motor Insurance offers significant protection beyond its status as a legal requirement.

“Often seen simply as a legal obligation, Third Party Motor Insurance is far more than a document to avoid enforcers of the law. It provides financial protection that safeguards victims of accidents so they are not left stranded,” he said.

Under Nigerian law, Third-Party Motor Insurance is the minimum compulsory insurance cover required for vehicles operating on the country’s roads. While Comprehensive Motor Insurance is optional and offers wider protection, third-party cover ensures that vehicle owners have financial protection in place for certain liabilities arising from accidents involving other people.

The policy provides financial relief to third parties who suffer property damage, bodily injuries or loss of life in road accidents, subject to the applicable policy terms and coverage limits.

With an annual premium of ₦15,000 for private vehicles and different rates applicable to commercial vehicles, motorists can access a range of benefits designed to protect accident victims against the financial consequences of road mishaps.

The insurance cover provides up to ₦3 million for the repair or replacement of third-party property damaged in an accident. It also provides medical support for injured victims and compensation to the families of deceased persons, subject to the applicable policy terms and limits.

Another important benefit is cross-border protection through the ECOWAS Brown Card Scheme, which facilitates motor insurance coverage for motorists travelling across participating West African countries.

For motorists, Third-Party Motor Insurance represents more than the fulfilment of a statutory obligation. It demonstrates financial responsibility towards other road users and helps ensure that innocent victims of accidents have access to compensation when covered incidents occur.

At a relatively modest annual cost, the policy offers an important layer of financial protection, reinforcing the need for motorists to understand its benefits and maintain valid insurance coverage.

Customers can obtain more information by visiting any Cornerstone Insurance branch nationwide, calling 07086216957, or exploring the company’s offerings online at www.cornerstone.com.ng.