The underwriting firm, Linkage Assurance Plc, has enhanced the consumer benefits in the existing compulsory “Motor Third Party Insurance Policy” under the Insurance Act 2003 with additional protection for the insured’s vehicle.
The existing compulsory “Motor Third Party Insurance Policy” does not cover the insured and his/her motor vehicle. It covers the insured’s legal liability for the damage the insured has caused to a third party only – injury, death, and/or property damage caused to a third party in the event of an accident caused by or arising out of the use of the insured vehicle. Premium for this policy is N5, 000.00 and N7, 000.00 for private and commercial vehicles plying the Nigerian roads respectively.
However, the new product (‘Linkage Third Party Plus’) recently unveiled by Linkage Assurance Plc offers an additional coverage (own damage cover) for the insured. This is an innovative insurance solution available only from Linkage Assurance PLC as a budget cover for private vehicles.
This new product covers all the benefits under the existing compulsory “Motor Third Party Insurance Policy” as stated above, plus the additional benefit of own damage protection. Thus, the policy provides additional cover for the insured to a maximum sum of N250,000.00 for damage to his/her own vehicle in the event of an accident.
The premium for the policy is N10, 000.00 per annum, just an additional N5,000.00 to the cost of obtaining the existing compulsory “Motor Third Party Insurance cover for private vehicles. “This is an invaluable, budget friendly, new product designed to meet the needs of all Nigerians particularly in this period of economic recession, says Dr Pius Apere, Managing Director/CEO, Linkage Assurance Plc.
Apere said the product has been developed with Nigerians in mind, having realized that many may not have the funds to take the Motor Comprehensive Insurance Policy for their vehicles at this time of economic recession, stating that with Linkage Third Party Plus you are able to get own damage cover up to N250,000.00 for just N10,000.00 premium per annum.
Thus, the product is particularly suitable for those policyholders who could no longer afford the cost of obtaining a Motor Comprehensive Insurance cover. Furthermore, the product is also highly suitable and appropriate for policyholders currently having the compulsory Motor Third Party Insurance Policy because with just an additional N5,000.00 premium payable they would also have own damage cover for a maximum sum of N250,000.00.
Dr Apere further stated that the future of the Nigerian insurance industry lies with penetration into the retail sector, unlike the corporate sector of the insurance business which is heavily saturated. “The retail market is still largely untapped with a huge potential for securing large volume of sales.”
According to him, Nigeria has over 180 million people, majority of whom are medium and lower income earners and they are unaware of the benefits of insurance. “Thus, the potential for growth is enormous and the opportunity is massive.”
Above all, Linkage Third Party Plusis a new product (designed to meet the needs of customers) which is here to reposition Linkage Assurance Plc to deepen the penetration of insurance in the retail sector of the Nigerian Insurance Market and it is currently being sold only by Linkage Assurance Plc.