Tag Archives: Insurance

AUTHORIZED REPAIR LIMIT IN MOTOR INSURANCE – MEANING & IMPLICATION

textgram_1494066380

Authorized Repair Limit (ARL) in motor insurance is an amount over and above the policy excess which the insured is allowed to expend on repairs of an insured vehicle following a loss or damage without necessarily requiring the insurer’s consent. Continue reading AUTHORIZED REPAIR LIMIT IN MOTOR INSURANCE – MEANING & IMPLICATION

THE CHALLENGES WITH MOTOR CLAIMS ADJUSTMENT (PT.1)

Motor Insurance is about the most popular of all the various classes of insurance in Nigeria and understandably so. It is an everyday risk and the very nature of an automobile easily brings to mind the risks attached. Besides, in Nigeria, it is a criminal offense to drive an automobile without having at least a Third-Party Motor Insurance cover (read more on Third-Party Motor Insurance cover “here“). Continue reading THE CHALLENGES WITH MOTOR CLAIMS ADJUSTMENT (PT.1)

EATING YOUR CAKE AND HAVING IT BACK

underinsurance

Mr. XYZ took up a comprehensive motor insurance cover on his brand new car which he got for N7,500,000.00. Since the insurance premium payable would be based on the value of the vehicle, he decided to reduce the value to N3,000,000.00  so that he would not have to pay so much in premium.

Some months after, his car was involved in a ghastly accident and the cost of repairs was about N2,500,000.00. In settling his loss, his insurance company, having weighed the amount he was claiming to the sum insured, opted to treat the claim on a Constructive Total Loss(CTL) basis. By this option, it means that the insurer decided that based on their records, the vehicle was beyond economic repairs. Mr. XYZ was offered the sum of N2,800,000.00 (after all deductibles) in settlement of the claim.

Mr. XYZ found himself in a fix. The amount he was offered was not even up to half of the value of the car but he couldn’t afford to repair the car himself. However, accepting his insurer’s offer would require that he forfeits the damaged car to them in line with the conditions of the insurance policy.

You obviously cannot eat you cake and have it back. Continue reading EATING YOUR CAKE AND HAVING IT BACK

HOMEOWNERS INSURANCE POLICY – UNDERSTANDING WHICH LOSSES ARE COVERED

12

We started a new series of discussion on Home Owners Insurance Policy last week and we examined the items covered under the policy. Having understood this, we now need to examine the degree of protection provided by the policy and those losses that the policy would provide compensation against.

Before we proceed, we summarize our last discussion below; Continue reading HOMEOWNERS INSURANCE POLICY – UNDERSTANDING WHICH LOSSES ARE COVERED

HOMEOWNERS INSURANCE POLICY – WHAT DOES IT REALLY COVERS?

home2

Recently, there has been lots of campaign on social media for Home Insurance Policies. While this is a welcome development as the public are being encouraged to protect their most cherished possessions, many of these invitations do not detail the numerous benefits of this policy, what you should look out for when buying the policy and how you can effectively seek compensation under the policy. Continue reading HOMEOWNERS INSURANCE POLICY – WHAT DOES IT REALLY COVERS?