Category Archives: Motor Insurance

THE RELEVANCE OF FLOOD EXTENSION IN MOTOR INSURANCE

Flood damage is a standard exclusion in a Motor Insurance Policy.

Meaning that your motor insurance cover is not likely to have damages caused by flood as one of the items it would provide compensation against in the event of an occurrence.

The implication is that in the event where you car was damaged by a flood, your insurance company is not under any obligation to cover your losses should you file for a claim.

You are left stranded, disappointed, and you end up feeling defrauded. Probably the policy was oversold to you, or you just didn’t remember to ask necessary questions.

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Constructive Total Loss in Motor Insurance

Your insurance policy document contains the terms and conditions of the contract between you and your insurance company.

Underwriters (insurance companies) incorporate clauses into insurance policies to limit their liability, protect them from undue exposures and from being taken advantage of. One of such clauses is Constructive Total Loss (CTL).

Do you have a motor insurance policy? If yes, then you need to know what this clause is about.

CTL is a standard motor insurance policy wording. No prudent underwriter would expunge it from your policy on you request, and it is rarely altered to suit a particular client. This invariably means that the best you can do is to understand the clause and how it is applied so that you are informed and prepared should there be need for it.

Before delving into what CTL is, an understanding of what Total Loss is, as it applies in motor insurance (MI), is necessary.

What is Total Loss in motor insurance?

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THE CHALLENGES WITH MOTOR CLAIMS ADJUSTMENT PART 2

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An area of challenge that has been observed in the adjustment of motor insurance claims is the inadequate understanding of the difference between the Policy Excess clause and the Contribution conditions in an insurance policy. Even among some insurance agents, these two concepts are often misunderstood and consequently misconstrued. And this misunderstanding is further passed on to the insured by unintentionally misrepresenting the policy. Continue reading THE CHALLENGES WITH MOTOR CLAIMS ADJUSTMENT PART 2

AUTHORIZED REPAIR LIMIT IN MOTOR INSURANCE

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Authorized Repair Limit (ARL) in motor insurance is an amount above the policy excess which a policy holder 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

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)