Motor vehicle insurance certificate: A legal document
Motor vehicle insurance certificate: A legal document

By Abolanle Ogunlami

Motor Insurance Certificate no doubt is a statutory requirement and condition precedent to driving on Nigeria roads. It can either be Comprehensive or Third Party Motor Insurance.

While Comprehensive Insurance covers both the third party and the owner of the policy in case of any eventuality, third party insurance covers, damages and liabilities caused to a third party. For example, if a policy holder damages someone’s vehicle, the insurance company will only be liable to pay the claims due to the third party whose vehicle was damaged.

Third Party Vehicle Insurance is the cheapest of all vehicle insurance policies and least form of auto insurance. It does not cover drunk driving or driving without a valid driver’s licence.

The Motor Vehicle Act of 1945 mandates all vehicle owners to take on, an insurance policy on their vehicles for their best interest and for the protection of third parties in the event of any accident.

Consequently, Section 143 of the Nigeria Road Traffic Act, Motor Vehicle (Third Party Insurance) Act 1953 and Insurance Act 2003 makes it an offence to use a vehicle on the road or public place without insurance coverage. A fine of N250, 000 or six months imprisonment or both is also stipulated by the 2003 Act for offenders.

Insurance in the real sense is an arrangement by which a company or the state undertake to provide a guarantee of compensation for specified loss, damage, illness or death in return for payment of a specified premium or a thing providing protection against a possible eventuality.

Insurance policy is usually a contract between the insurer (the insurance company) and the policy holder, which determines the claims, which the insurer is legally required to pay. In exchange for an initial payment known as the premium, the insurer promises to pay for loss caused by perils covered under the policy language.

As an inclusive and participatory government that has the interest of citizens at heart, the Ogun State Government through the State Ministry of Finance and Internal Revenue Service (OGIRS) in collaboration with a consortium of all reputable insurance underwriters and brokers operating in the state introduced an integrated single E-Third Party Insurance Certificate for Motor Vehicles and Light Trucks. The said E-Third Party Insurance Certificate issued through the Lead Underwriter has the name/logo of all participating insurance underwriters and brokers.

According to the Commissioner for Finance and Chief Economic Adviser to the Governor, Mr. Dapo Okubadejo, while officially flagging off the E-Third Party Insurance Scheme on behalf of the state government at Ogun State Internal Revenue Service (OGIRS) headquarters in Abeokuta, the scheme is a win-win initiative for motorists in the state, as it would ensure transparency and make insurance firms accountable to pay claims or compensations when the need arises.

• Abolanle Ogunlami works with the Ogun State Internal Revenue Service (OGIRS), Abeokuta.

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