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What your car insurers won’t tell you – Your N5,000 third-party car insurance gives you 1 million naira cover By Azuka Onwuka



What your car insurers won’t tell you – Your N5,000 third-party car insurance gives you 1 million naira cover

By Azuka Onwuka

Why do Nigerians bicker when their cars are involved in minor accidents? It is usually argued that the reason is that most Nigerian vehicle owners do not have “comprehensive insurance cover.”

Nigerian comedians use this as a joke regularly, comparing how Nigerian vehicle owners react to minor road accidents and how vehicle owners in the Western world react to similar accidents. When two vehicles have a minor accident on a Nigerian road that involves some dent or some damage to the headlamps or rear lamps, the two drivers would quickly jump out of their vehicles, inspect their vehicles and start shouting at each other, wagging fingers at each other, which may degenerate to an exchange of blows. Some may seize the offending driver or tow his vehicle away and insist that he must pay for the damage caused. In some cases, the person whose car has suffered more damage may rush to the car of the other person and damage its mirror or headlamp or even windscreen in retaliation. As the comedian acts this out, members of the audience laugh because they have either witnessed it or participated in it.

However, when such a minor road accident happens in the UK or the US, the comedian changes his countenance. He paints a picture of how the two drivers will come out of their vehicles gently, survey what has happened, exchange insurance policy numbers and business cards and drive off. The reason is that they know that their insurance companies will take care of the damage.

These jokes have sunk into most Nigerians as the reality. Most Nigerian car owners believe that the N5,000 third party insurance does not cover anything. The belief is that it is procured just to avoid the trouble from police officers who check vehicle particulars on the highways. But is that true?

That is a big lie. That so-called meaningless N5,000 insurance cover that you think is just for the police gives you a cover of N1,000,000 (one million naira) for any damage to any person’s property. Just open your glove compartment now, bring out your car insurance and read it. If it is not written on the front page, turn the leaf and check for it. You will see that the N5,000 you paid to the insurance company is not to fulfil all righteousness and escape police wahala. It is meant to protect you from fighting with another road user in the event of an accident. It is meant to ensure that you don’t hand over N100,000 or N300,000 to another road user because your car damaged the person’s headlamp or bumper or fender or bonnet. It also has an unlimited cover limit for any death or bodily injury you cause a third party with your vehicle.

So when you hit someone’s vehicle or damage someone’s property or injure someone or even kill someone, as long as your N5,000 insurance is valid, your insurance company will pay that person the cost of the damage within one million naira, if it is property, but if it is bodily injury or death, the amount may be decided mutually or by the law court.

It is called third-party insurance cover because it does not cover losses you incur in an auto accident. You are the first party; the insurance company is the second party; while any other person hit by your vehicle is the third party. So you have insured your car for any damage done to any other road user. If you want your car to be covered, you do the comprehensive insurance.

But if you and someone hit each other and damage each other’s vehicles and both of you have that N5,000 insurance cover, the person’s insurer should pay for the damage to your vehicle, while your insurer should pay for the damage done to the person’s vehicle.

So when Nigerians are involved in minor accidents, there is no need for all the drama they engage in. They just need to confirm that the other party has a valid N5,000 insurance cover. And because of the fear of the police on the highways, most private car owners have that insurance. Only the drivers of private intra-city commercial buses usually default in this.

However, when you want to renew your insurance cover, don’t give it to touts to do for you, to avoid spending your money to get a fake document. Check around you for the nearest office of an insurance company, broker or agent, or check for the list of Nigerian insurance companies online and send a message to them. They may even come to your office to collect the material.

That many Nigerian car owners or drivers don’t know their right is to the advantage of the insurance companies. What it does for them is that most people who are involved in road accidents do not report such to their insurers. Most car owners ignorantly pay the other party, if such is demanded, and go away to repair their vehicle. Sometimes, the owner of the vehicle decides not to collect any money and goes on to repair the vehicle. Such people are prayed for and called good men or women.

Naturally, the insurers do not bother to explain to those who patronise them what their rights are. Most times, vehicle owners do not even get the vehicle insurance cover themselves. They give money to a tout to procure it. Ironically, getting an insurance policy for a vehicle is the easiest paper one can get for a vehicle. Unlike other vehicle-related documents like driving licence, road-worthiness licence, vehicle licence, proof of ownership, registration number document and the like, the insurance cover is the only one that is not issued by a government agency. Therefore, it does not involve any bureaucracy, which usually causes delays which lead to bribery and corruption in the name of “processing fee.” There is nothing to process in an insurance policy. Just like banks are open all over the country looking for customers, so do insurance companies have branches and outlets all over the country looking for patrons. And just as banks are regulated by the Central Bank of Nigeria, so are insurance firms, brokers, and agents regulated by National Insurance Commission.

Once you make a payment to the insurance firm, your details and the details of the car are entered and your policy certificate is printed out. The document contains the policy number as well as your certificate number, which you will quote in the event of any claim. You can immediately verify the genuineness of your insurance by entering your policy number or vehicle number in the portal of the Nigerian Insurance Industry Database (NIID). If there is any hanky-panky, you can immediately report the insurance company, and the individual or company will be penalised.

The interesting thing about vehicle insurance is that the amount (N5,000) is so small that no vehicle owner should find it hard to pay annually. And one should not wait for it to expire for even a day before renewing it. It is even better to renew it a week or so before its due date to avoid any story. Accidents don’t give a notice before occurring.

If a car owner wants to add N100,000 cover for his vehicle, he can take the N7,500 special policy. This package covers the third party for up to N1,000,000, but covers you for up to N100,000. This will ensure that anytime you have a minor accident, your insurance company can take care of it for you.

But if you want your insurance company to take full responsibility, then you can go for the comprehensive cover, which is usually about 5 percent of the worth of your car. This will also cover the third party.

The ignorance about vehicle insurance is similar to that about health insurance. Most Nigerians do not know that they can insure themselves for about N20,000 annually and get treated throughout the year in good hospitals.

It is said that knowledge is power. Sadly, the Good Book says: “My people perish for lack of knowledge.”

— Twitter @BrandAzuka
© The Punch

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President Muhammadu Buhari Monday in Abuja assured Nigeria’s former Minister of Finance and Economy, Dr Ngozi Okonjo-Iweala, that the country will explore every opportunity and deploy its entire energy to ensure that she becomes the Director-General of World Trade Organisation (WTO).
Dr Okonjo-Iweala is one of two candidates contesting for the top position of the multilateral institution.
President Buhari, who received the former Managing Director (Operations) of the World Bank at the Presidential Villa, said she deserved more support to get the top job because of her profile and diligence in serving the country, and the world.
“I assure you that we will do all that we can to ensure that you emerge as the Director-General of WTO, not only because you are a Nigerian, but because you are a hardworking Nigerian. You deserve this,’’ he added.
The President assured Dr Okonjo-Iweala that he will make more phone calls, and send letters to some world leaders for more support.
“I did the same for Dr Akinwunmi Adesina for President of the African Development Bank. Both of you served the country under the Peoples Democratic Party (PDP). You are both highly qualified. We will continue to support you. I will immediately make those calls,’’ the President told Dr Okonjo-Iweala.
In her remarks, Dr Okonjo-Iweala, a renowned development economist, thanked the President and his ministers, particularly the Ministers of Foreign Affairs, and Ministers of Industry, Trade and Investment for supporting her staunchly.
“I feel very proud of Nigeria. I am getting so much support from you, Mr President, Chief of Staff, Ministers of Foreign Affairs and Ministers of Industry, Trade and Investments. The ministers have been working around the clock to ensure that I succeed,’’ she said.
The former Minister of Finance also appreciated ECOWAS leaders for their endorsement, mentioning in particular the outstanding contributions of President Mahamadou Issoufou of Niger Republic and immediate past Chairman of ECOWAS as well as President Alhassan Quattara of Cote d’Ivoire.
She asked the President to “make one final push within the week to beat the Koreans and bring this to Nigeria by sending a few letters and placing telephone calls to some world leaders, and also thank others for their support.’’
“Mr President, put a smile on my face,’’ she said, “I am very proud of the country.’’
Garba Shehu
Senior Special Assistant to the President
(Media & Publicity)
October 12, 2020

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Babatunde Olusegun Adewale is a popular Nigerian rapper and lyricist who goes by the stage name, Mode 9. The rapper has been in the industry for a very long time and is one of the leading rappers in Nigerian music history. He has recorded several albums and also had mixtapes released to his name. He is also a multi-award winning rapper, having a record of most wins at the Headies Awards. He owned the “Lyricist of the Year” award category for a long time and no one has been able to dominate as much as he did in recent times. Join me as I take you through his early life and childhood, music career, personal life and some of his songs.


The rapper was born on the 14th of June 1975 in London, United Kingdom to Nigerian parents who hailed from Osun State. He is the third children of his parents. His secondary school education was at Agboju Seconday School and then he proceeded to Federal Polytechnic, Bida in Niger State where he bagged a degree in Building Technology. His music influences were Grandmaster Flash and The Furious Five. 


Mode 9 started music as far back as the early 2000s. He released his debut project in 2004 for “Malcolm IX”. The album enjoyed a fair amount of success and it helped gained the rapper popularity in the industry. He was known for his incredible rap style and fast became one of the lead rappers in the industry. He released another album two years later in 2006 for “Pentium IX”. At the time, he was already recognised as a good lyricist and rapper and he was already bagging awards for it.

Mode 9 didn’t stop at that, he released several other albums. He has recorded eight studio albums and five mixtapes to his name. He has also released five featured albums with the most recent recorded with Black Intelligence for “Hence4th” in 2018. His most recent album was in 2019 for “Monument”. The rapper, at a time, stopped releasing his albums in Nigeria because he felt Nigerians gave up on him.

His awards list is quite the collection. He has won 9 Headies Awards to his name and bagged the Lyricist Award of the Year seven times in a row, which still stands as a Headies record. He also has won a number of Channel O Awards for music videos. 


Mode 9 loves to keep information about his personal life private. There is no known information about if the veteran rapper is in any relationship.


Some of his songs include;

  • Where Una Dey
  • Nigerian Girls
  • Insulin
  • Elbow Room
  • Nine
  • Cry
  • Kaiser Flow
  • 419 State of Mind
  • Collage
  • It’s a Goal
  • 360 Poetry
  • Super Human
  • Polymath

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Modupe Oreoluwa Oyeyemi Ola is a Nigerian singer, rapper and songwriter who goes by the stage name “Mo Cheddah”. She always loved music as a child and even started singing from a young age. Her big break came with the release of her song titled “The Finest” featuring Sauce Kid and Tito. Following the release of the track, Mo Cheddah went on to drop even more songs and then her debut album. “Komaroll”, “If You want me” and “Destinambari” featuring Phyno are three of her other big songs in her career. Join me as I take you through her early life and childhood, music career, personal life and some of her songs.


The talented singer was born on the 26th of October 1990 in Lagos though she hails from Osun State, Nigeria. She was the fourth of five children. She had her early education in Lagos with her primary school education at University of Lagos Staff school and her secondary school education at Our Lady of Apostles school in Yaba, Lagos. After that, she proceeded to the University of Lagos to pursue a degree in Creative Arts. 


Mo Cheddah’s music career started from when she was 12. She got signed to a record label named Knighthouse Entertainment when she was 13. At the time she was still in school and she expected to be a child star. She used to spend time in studios during her holidays. She released her first song when she was 17 and from there she became popular. The first single was titled “Las Birdie”. She went on to record the song with Sauce Kid and Tito titled “The Finest”. The song was a hit upon release and helped her gain even more popularity. The song ultimately launched her music career.

Following up the previous successes of her singles, she dropped another hit titled “If You Want Me”. The song also enjoyed a period of success and got her the award for Best New Artist at the MTV Africa Music Awards (MAMA) in 2010. The video for the song also got Best Female Video at the Channel O Music Video Awards. Her debut album dropped in 2010 for “Franchise Celebrity”. She left her record label, Knighthouse Entertainment, after a while and went on to start her own which she called it “Cheddah Music”.

 Mo Cheddah took a break from music when she was 21 because she wanted to enjoy a normal life. She came back after a couple of years. 


She is married to longtime boyfriend,  Bukunyi Olateru Olagbeji. Asides music, she is a fashion designer. She also runs a blog.


Some of her songs include;

  • My Time
  • Bad ft Olamide
  • Tori Oloun
  • Coming for You ft May D
  • Destinambari ft Phyno
  • Survive
  • See Me
  • Shampoo
  • No be Money
  • Wole Pelu Change


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