​BEYOND MOTOR INSURANCE – The Extended Benefits

There are extraordinary extensions you can incorporate into your motor insurance policy that goes way beyond the regular motor insurance protection.You will recall that we dealt extensively with the covers (both standard and extensions) provided by motor insurance policy in our previous discussions. As we round up our discussion on motor insurance, we shall be taking this extensions a little further.

It is pertinent to state here that many of these extentions are subjects of another policy and your insurer may not be favorably disposed to them. They attract higher rates and many factors are put into consideration before an insurance company would agree to grant such cover.
They extensions are;

1. Alternative vehicle clause: This is a temporary vehicle provided by your insurance company pending when your damaged vehicle is repaired and ready for collection or your claim is paid (whichever comes first). It could also take the form of the cost of hiring cab services for a number of days and a specified time frame. This extension is not common in the Nigerian Insurance market but on special request. Besides, it is only offered to clients that are considered to be of high net-worth.

2. Loss of use: This is a form of payment for consequential loss or inconvenience fee as a result of any undue delay that may arise in the settlement of a claim provided that such delays are not attributable to the insured or anybody acting in their capacity. The period for which the loss of use is computed starts from when the insured has fully documented their claim.

3. Loss of personal effect: Such personal effect includes wristwatches, laptops, phones and tablets, jewelries but usually exclude cash, credit cards, vouchers etc. The standard motor insurance policy usually provides a compensation for loss of personal effects following a loss involving the insured vehicle. However, the amount is usually very little. One could request for an upward review if interest but it is usually subject to payment of additional premium.

5. Personal Accident benefits: There is an element of personal accident benefit in motor insurance which provides cover for medical expenses incurred by the insured for himself, his driver and or any occupant of the vehicle who is injured following an accident involving the insured car. An additional sum can be included for self other than the medical expenses.


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