It is statutory that all motor vehicles on the road should be insured against Liability to third party property, injury or death. In Nigeria, insurance for private and commercial vehicles are usually arranged on Comprehensive, Third party Fire and theft and Third party only basis.

 (a) The Comprehensive Motor Insurance indemnifies the Insured against loss or damage to the insured vehicles arising from accident, fire and/or malicious act, theft, as well as legal liability to third parties for loss of life and property damage resulting from accident to the insured vehicle.

(b) Third Party Fire & Theft Covers loss or damage to the insured vehicle caused by fire or theft. It also covers legal liability to third parties for loss of life and damage to property following an accident involving the insured’s vehicle(s).

(c) Third Party Only: This covers only liability for third party’s property damage, bodily injury or death resulting from an accident involving the insured vehicles.