Why Do We Argue and Fight: A Brief Summary on Third Party Insurance Policy.

In an attempt to expand the scope of readers, improve their reading experience and encourage them in this endevour,, I am going to water down my language and engage in layman parlance and/vernacular language when necessary. When you see this, kindly note that this is a deliberate act on my part.


I cannot speak about third party insurance without first attempting to define insurance. Insurance generally is to guarantee that in the case of certain events, a person will not suffer loss. Therefore an insurance company simply guarantees its clients that in the case of fire, theft, accident e.t.c, they would not suffer loss. This clearly means that an insurance company does not place you in a better situation than you were before the “guaranteed event” occurred, neither would they leave you in a worse situation.

Have you ever wondered why the term “life Insurance” does not exist?

If the purpose of insurance is to place you in the situation which you previously were, then how can an insurance company give life in an event where loss of life occurred? The right term where the insured event is the death of a person is life assurance. The insurance company, assures the Policy holder ( this is the person who takes an insurance policy) that upon his death, his beneficiary ( the person who reaps the benefit from the insurance policy) would be given a certain amount of money.

What is the purpose of an Insurance Policy?

From the above, it is clear that an insurance policy is a Shield that protects the beneficiary of an insurance policy from loss. An insurance policy is never meant to be a sword that could help the advancement or gain of the beneficiary. At this point, I want you to imagine that an insurance policy is a security blanket; it does not prevent you from experiencing the horrors that happens during the event, but ensures that you do not suffer financial loss. For example, an insurance policy against damage from fire outbreak, would not prevent a fire from burning the insured property( a house), neither would it stop the beneficiary from smelling the smoke and feeling the heat of the fire, all it would do is to build the house, to its previous standard before the fire.

What is third party insurance?

Third party insurance is an insurance that a policy holder pays for, in which the beneficiary is the third party. Therefore, your cars third party insurance, in the case of an accident, can never help repair your car, but will repair the cars of the other party involved in that accident. It is a shield that protects the other person whose car has suffered damage, directly or indirectly, due to your mistake or negligence.

In an ideal situation, both parties in an accident would have an insurance policy. They would both make a claim for the repairs of each other’s cars therefore negating the need for arguments or fights. Unfortunately, in Nigeria, there are several fake insurance policy sellers. This has in the past prevented policy holders from utilizing their insurance policy during their time of need.

The solution provided by the Nigerian Government.

To assist in solving the problems of ‘fake insurance policies” the Nigerian government created the Nigerian Insurance Industry Database (NIID) Platform. The NIID website would help you check the validity of your insurance policy and purchase an insurance policy (click the word HERE to view the NIID website)

If you have verified the validity of your insurance policy, and the results are favorable, then Congratulations! the first challenge has been surmounted. The next step is to benefit from your insurance policy.

I will advise you to pick up your insurance policy documents, Read it, look for the website contained therein and contact the person in charge of processing your claims. Inquire from that person, what documents you would need to process a valid claim and ensure that you acquire this documents when/if you have an accident.

The next time you are involved in an accident. Ensure Your Policy Works For You.



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