Car insurance is a widely used policy due to its affordability and the prevalence of vehicles in the country. However, the process for making a car insurance claim can be less clear. While the steps may vary between companies in Nigeria, they generally follow a similar pattern.
If you’re seeking some helpful tips on this topic, you’ve come to the right spot! In this article, we’ll walk you through the usual claim process and share a simple step-by-step guide to make things easier for you.
What are the steps to processing a car insurance claim in Nigeria?
The steps to processing an insurance claim in Nigeria is very straightforward. It is simple as long as you have all the evidence of the incidence. After gathering your evidence, follow the steps below to make a claim with your insurance company:
- Contact your broker:
As an insured, your insurance company would always hand you over to a broker, who would handle your case. They usually assign this person during your insurance application procedure, and he oversees everything about you from then. The actual reason for contacting your broker is to make a claim.
Your insurance broker would know what to do, and direct you on the next step. Note that the claim process for car insurance might differ from one company to another.
- Allow your insurance company to carry out an investigation
To determine the legitimacy of your claim, your insurance company would carry out an investigation. This is to avoid any fraudulent activities and is done by all insurance companies. People in the past have swindled insurance companies through false claims.
During the investigation process, they examined the extent of your damage and compare it to your insurance policy. The investigator would also identify all third parties involved, which you can help by providing witnesses. On confirmation, your claim can proceed to the next step.
- A thorough review of your insurance policy
Car insurance policies vary. Yours is reviewed, and compared to the extent of damage incurred by the incidence. This process is to determine what it covers and what isn’t. In conclusion, they inform you of the result, including applicable deductibles that may apply. - Damage evaluation
Since it is car insurance, your insurers would hire automobile experts to evaluate your damage extent accurately. Upon completing this process, your insurer provides you with a list of preferred vendors that can handle repairs. - Payment at last
The last step after investigation, evaluation, and repairs is to make payments. Your insurer would contact you regarding the financial settlement to discuss the mode of payment. Note that payment only covers what it states in your policy.
The time it takes for you to receive payment also varies. It depends on your insurance company and the severity or complexity of the incidence. The higher the sum of money involved, the more time it takes to sort out paper works and make payments.
How Does Car Insurance Work in Nigeria?
In Nigeria, all drivers are advised to have a third party insurance, so as to drive legally. Car insurance is one of the minimum insurance requirements for road users. This is to make sure that other motorists get compensation for damages caused in the event of an accident or collision.
You can purchase this car insurance from an insurance company which comes with terms and limits for claims.
How to lay a claim under 3rd party insurance contract
When you have a third party insurance, after an accident, take the following steps immediately:
- Make a claim against the other driver with enough evidence (pictures and more) for your insurer to decide who is at fault for the accident.
Note that if you are at fault, then you would have to pay for the repairs of your own vehicle.
2) Put it in writing that you want to claim from the other driver. Also, write to the owner of the other driver’s vehicle, if it’s not a personal one.
3) Inform your insurer through your agent and explain what happened.1)Request that the other driver contacts his own insurer.
From here, your insurer would carry out investigations and follow the steps stated above.
How to lay a claim under comprehensive insurance
- The first step to take after an incident when you have comprehensive insurance is to contact your insurer.
Your insurance company would in turn contact the insurance company of the third party involved.
You have a right to claim from the other driver’s insurer for any injuries that your own policy doesn’t cover. Do so if need be without hesitation.
These payments are called unsecured losses.
- Keep physical evidence and records of all your losses.
- You should get a form from your insurer that you would use to write to the other driver and their insurance company.
- Inform your insurance company of physical evidence and give the full details of the incidence.
- Present any valuable witness to the incident and send their statement to your insurance company.
- Sit back and watch your insurance company carry it from there on. They would contact you if they need your assistance in any way.
How Insurance Companies Pay Out Car insurance is a widely used policy due to its affordability and the high number of vehicles in the country. However, understanding how to file a car insurance claim can be less clear. While the process may vary between companies in Nigeria, it generally follows a similar pattern.
Steps to Process a Car Insurance Claim in Nigeria
Filing a car insurance claim in Nigeria is straightforward if you have all necessary evidence. After gathering your information, follow these steps to make a claim:
- Contact Your Broker: Your insurance company assigns a broker to assist you throughout your policy. To initiate a claim, reach out to your broker, who will guide you through the process. Keep in mind that procedures may vary by company.
- Investigation by Your Insurer: Your insurance company will investigate the claim to confirm its legitimacy and prevent fraud. They will assess the extent of the damage and identify any third parties involved, with your assistance in providing witnesses.
- Review of Your Insurance Policy: The insurer will review your policy against the damage incurred to determine coverage and any applicable deductibles.
- Damage Evaluation: Insurance companies hire automobile experts to assess the extent of the damage. After evaluation, they will provide a list of approved repair vendors.
- Payment: Following the investigation, evaluation, and repairs, your insurer will discuss the financial settlement with you. Payment will be based on the terms of your policy, and the timeline for payment can vary depending on the complexity of the claim.
READ ALSO: Car Owners Impel NAICOM, Police to Mandate Payment of Insurance Claims in Nigeria.
How Car Insurance Works in Nigeria
In Nigeria, all drivers are required to have third-party insurance to drive legally. This minimum insurance ensures compensation for damages caused to other motorists in accidents.
To file a claim under a third-party insurance contract, follow these steps after an accident:
- Gather evidence (photos, etc.) to support your claim against the other driver.
- Submit a written claim to the other driver and their vehicle owner if applicable.
- Notify your insurer through your agent and explain the incident.
- Request that the other driver contact their insurer.
Your insurer will then conduct an investigation and follow the outlined steps.
For comprehensive insurance claims, contact your insurer immediately after an incident. They will reach out to the third party’s insurer. You can also claim for any injuries not covered by your policy. Keep records of all losses, fill out the necessary forms from your insurer, and provide witness statements. Your insurer will handle the rest and contact you if they need further assistance.
How Insurance Companies Pay Out Claims
Insurance companies typically assess all damages from an accident and offer a payout based on your policy’s terms and limits. The first payment may be an advance, so confirm with your insurer.
The claim process is generally straightforward, especially with responsive insurance companies. Car insurance is a valuable and affordable option with an easy claims process. If you don’t have coverage, consider purchasing a policy today.
Most times, the company will check out all damages or accidents caused by the accident and offer you a sum based on the terms and limits of car policy. The first check can be an advance and not the final payment. Ensure you ask to be sure.
Like we earlier said, the claim process is straightforward and not stressful. This is true, especially when you are insured with a rapid response company.
Car insurance is one of the most beneficial and cheap policies out there, with an easy claim process. Do well to purchase one if you don’t have one today
