These are cars used for private and domestic purposes. They could either be a Saloon car, Wagon or Jeep.
These are vehicles use by the insured for his business purpose. They could fall under the following categories;
Own Goods: Vehicles used by the insured for his private business only and the carriage of goods belonging to the insured and his business.
General Cartage: These are vehicles used solely by the insured for the running of his business and for commercial activities like carriage of goods for reward.
Fare paying/non-faring passenger vehicle: These are vehicles used in carrying passengers from one destination to another either for the payment of fare or none. Luxurious buses, taxis fall under these categories.
This must be motorcycle used in the running of the insured business like dispatch rider or vendor of goods. Passenger carrying cycle is excluded.
TYPES OF COVER
There are four different types of cover available under motor policy, these are:
It provides cover for the insured vehicle against the following:
- Accidental damage to the vehicle
- Loss of or damage to the insured vehicle by fire or theft
- Malicious damage to the vehicle
- Insured’s legal liability to third parties in respect of any damages to the property of such third parties and for any injury or death to the third parties arising from the use of the motor vehicle
The policy provides cover against loss or damage to property arising from Burglary and Housebreaking accomplished by entry or exit by actual forcible and violent means. The cover could either be for Private or Business Premises.
Private: This covers the insured’s household goods and personal effects and those of his domestic servants and people temporarily residing with him against the risk described above, it does not cover the risk of larceny.
Business Premises: The same risk described above is covered under this policy but in respect of stock-in-trade, the property of the insured or those held in trust or on commission. It also covers damage to furniture and fittings belonging to the insured. The policy excludes the risk of larceny or embezzlement by employees.
The standard fire policy is designed to cover or protect the insured property such as building and contents of every description against fire, lightning and explosion. The insured property could be private or commercial, owned or held in trust or on commission.
The standard fire policy can be extended through the payment of an additional premium to cover special perils such as flood, water damage, tempest, storm, tornado, hurricane, cyclone, typhoon, explosion, impact, riot, strike & civil commotion, malicious damage, bush fire, burst pipe, subsidence, spontaneous combustion, earthquake etc.
The policy covers loss of money comprising currency, bank notes, coins, money orders, current postage stamp belonging to the insured or for which he is responsible. The cover is of various classes as named below.
Cash in Transit: It covers loss of money belonging to the insured or for which he is responsible during the course of transit between specified places i.e. from insured premises to the bank vise versa.
Cash in Safe: It covers loss of money belonging to the insured or for which he is responsible whilst kept in a locked safe.
Damage to Safe: Cover could also be extended to cover damage to the safe. It covers the cost of repairing safes damaged in the course of committing a burglary.
Money in personal custody of staff: It covers loss of money in personal custody of senior members of the management or persons whose duties relate to purchase.
The policy covers the goods insured whilst in transit from a designated point by road, rail, waterways or air until delivery at the point named as destination. The cover could be any of the following two;
All Risks Cover: Provides an all risks cover for the insured goods against loss or damage from any accident or misfortune to goods in transit by any vehicle owned or hired by the insured. Covers include loading and unloading risks, whilst temporarily housed in ordinary course of transit within Nigeria.
Restricted Cover: it covers the loss or damage to the goods resulting from fire, theft and accidental collision or overturning of conveying vehicle.
The policy provides cover for all sums for which the insured shall be legally liable to pay to third party or members of the public in respect of bodily injury including death or illness and damage to their property in connection with the insured’s business.
The policy in addition to the above also covers claimant’s cost and other legal costs incurred with the written consent of Underwriters. The risk can either emanate from these two sources.
Work-Away-Risks: These relate to legal liabilities of the insured outside the premises caused by employees in connection with the insured’s business i.e. road construction work, dredging or erection of billboard etc.
Premises Risks: These are risks usually associated with the legal liabilities of the insured as occupier(s) of the insured premises. The insured owes visitors who are legally on the premises a duty of care, and any breach of this duty imposed on him by common law lays him open to liability.
Personal Accident insurance covers personal bodily injury or death resulting from an accident. When issued to a collection of people belonging to a club, organization or employees of a company it is refer to as Group Personal Accident Insurance.
The policy is designed to provide compensation to the insured persons [or representatives] following an accident that result into Death, Permanent Disability, Temporary Total Disability and Medical Expenses. The policy is extended on request to cover repatriation expenses where it is necessary for an injured insured person to be flown abroad for medical treatment.
The cover provided is on 24 hour basis and operates anywhere in the world. The insured person or employer is usually given the option to choose the level of benefit required for the various categories of employees it intends to cover. The benefit could be arranged as follows:
- Death Benefit:This could be a fixed amount or a multiple of annual wages paid to employees.
- Permanent Disability:This again could be a fixed amount or a multiple of annual wages paid to employees.
- Temporary Total Disability: This is a benefit paid to employers who have arranged such a cover for their employees. It could be the exact weekly wages paid to the employees concerned or a proportion thereof.
- Medical Expenses:This is payment for expenses incurred in offering medical treatment to insured person for injury from an accident. The monetary limit of the benefit is that selected by the insured person at inception of the policy.
The policy is designed to protect the insured against loss of cash or property he might suffer through dishonesty or fraudulent acts of his employees. Such loss must be discovered within six months after theft, dismissal, retirement of such employee or six months after the expiration of such policy whichever first occurs.