By Ade Fashola
Dear Readers,
This is the concluding party of last week repeat.
Yes, yes, yes. Third party auto Insurance is statutory and the coverages are standard. The only variation may be in the limit of insurer’s liability. You may ask your insurance company to increase your limit of liability and this may come with additional premium. I hereby repeat, all the benefits mentioned in my write-up of June 22, 2020 are inherent in all third-party auto insurance. I have therefore decided to use this week to discuss the Comprehensive Auto Insurance.
A comprehensive auto insurance is optional or voluntary. Its coverage will include all kinds of risk factors that are associated with your vehicle, driver, passengers, third-party vehicle, third-party driver, third-party vehicle passengers and third-party property. Please note that unlike third party auto, comprehensive auto insurance covers bodily injury to you, your driver, and your passengers. Comprehensive insurance policy will also cover weather damage, floods, fire, and theft of your vehicle. The following add-ons can be included as per need to get optimum protection roadside assistance, meaning if a vehicle stops in the middle of the road, the insurance company will come to your rescue so that the vehicle can be moved to the nearest service station for safety and repairs. You may also take an engine replacement option to cover damage to the engine due to various reasons. Another option is the Replacement of the windshield, if the windshield is damaged due to the accident. The replacement will be done by the insurance company. Damage to the car due to the entry of flood waters into the engine and other parts of the vehicle, car accessories due to fire, natural disasters such as a windstorm or earthquake, damage to the vehicle by hitting an animal. It is also possible to get cover for damage to your car in a situation you ran into angry mob in case of strike and riots.Vandalism coverage may also be bought as an add-on. All the options vary from insurer to insurer, you have to decide which one fit your need and budget.
Why will you buy a comprehensive auto insurance since it is not compulsory? Firstly, Like I mentioned in my past writings, insurance is not only for your peace of mind, it is also for your mental, financial and economic well-being. Insurance is to maintain your prosperity and growth. For example, let us say after three years of serious savings, you managed to buy a car, only to wake up one day to discover it is gone due to fire, theft, riot or any of the earlier mentioned perils, imagine your state of mind plus your savings and your status. But if you have a comprehensive auto insurance, within two to three weeks, you will not only back to your feet, you may have a newer model.
Secondly, if you bought your car on credit either through loan or higher purchase or on lease, your creditor or lessor may insist on the purchase of comprehensive auto insurance to cover both of your financial interest. Thirdly, if the car is jointly bought by two or more people, a comprehensive insurance may be necessary to cover all the participants’ interest. Finally, can you recollect the story Femi told me in the week of June 22, 2020 about Daniel and how he ended up in bankruptcy because of an accident with a commercial vehicle? Imagine what a comprehensive would have done in that particular instance, the insurance company will not only take care of all the people involved, Daniel vehicle would be fixed as well as his personal medical bills.
For those who are asking questions about claim relating to sales and transfer of vehicle, in case of any sale of vehicle involving transfer of policy, the former owner (transferor) should apply to the insurance company that issue the certificate of insurance to ask for their consent to such transfer. The transfer is assumed granted if within 15 to 30 days of receipt of such application, the insurer does not reject the plea. The transferee (new owner) shall apply within fourteen days from the date of transfer in writing to the insurer who has insured the vehicle, with the details of the registration of the vehicle, the date of transfer of the vehicle, the previous owner of the vehicle and the number and date of the insurance policy so that the insurer may make the necessary changes in his record and issue fresh Certificate of Insurance. In addition, for those asking me about good or bad insurance companies and my recommendation, It will be very difficult for me to use this medium. The Editor-in – Chief will not allow it.
It is impossible for two policies to be in existence on the same vehicle with identical cover, one of the policies must be cancelled. In a case of change of ownership, transferor may cancel if different insurers are involved.
On Comprehensive Auto Insurance, the only addition to third party claims in respect of the comprehensive insurance are damage or loss of insured property or vehicle, any legal liability incurred for death of or bodily injury of driver or passenger of the insured.
In case, the motor vehicle is damaged due to accident it can be repaired and brought back to working condition. If the repair is beyond repair then the insured can claim for total loss or for a new vehicle. It is based on the market value of the vehicle at the time of loss as long as the market value is less than sum insured or the insurer will pay full sum assured.. Motor insurance claims are settled in three stages. In the first stage the insured will inform the insurer about loss and the loss is registered in claim register. In the second stage, the automobile surveyor will assess the causes of loss and extent of loss. He or she will submit the claim report showing the cost of repairs or replacement cost.
Third stage, the claim is examined based on the report submitted by the surveyor or loss adjuster and his recommendations. The insurance company may then authorize the repairs. After the vehicle is repaired, insurance company pays the charges directly to the repairer or to the insured if he had paid for the repair charges.
CLAIM PROCEDURE
Are There Exclusions with the Comprehensive Auto Insurance?Of course, yes. Comprehensive auto insurance will offer maximum coverage but not everything. No insurance covers everything. Please be aware of the exclusions so that there will not be unpleasant surprises while claiming comprehensive insurance auto policy covers everything. These are normal wear and tear of the vehicle, aging of the vehicle, breakdown of electrical or mechanical parts, damage to tires and tubes of the vehicle including driving under influence or allowing unlicensed driver to drive your vehicle. Insurance companies may deny your claim in case of these exclusions.
