Is life insurance compulsory in Nigeria?

Which insurance is mandatory in Nigeria?

Motor third party insurance:

This insurance is compulsory for vehicle owners and drivers. It includes motorcycles and other types of commercial and private vehicles. The motor third party insurance is mandated by section (53) of the motor vehicle (third party insurance) Act of 1945.

Is having life insurance mandatory?

Not everyone needs life insurance. … Life insurance has long been a part of estate planning in the United States. Although life insurance does not need to be a part of every person’s estate plan, it can be useful, especially for parents of young children and those who support a spouse or a disabled adult or child.

How many types of insurance policy are made compulsory in Nigeria?

In Nigeria, there are six (6) insurance policies made compulsory by the law.

What is the compulsory insurance?

A compulsory excess is the sum that your insurer sets and is non-negotiable. This amount depends upon different factors including your age, the type of claim and your car type. The compulsory excess amount is added to the voluntary excess amount to make your total excess should you make a claim.

Do I need life insurance if I have no family?

Single people with no children often don’t need life insurance because no one is relying on their income. … If you don’t have life insurance, someone else (e.g., your relatives) may have to foot these bills. Even if you have only a small policy, the death benefits could be used to cover these expenses.

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Is it important to have insurance?

Buying insurance is important as it ensures that you are financially secure to face any type of problem in life, and this is why insurance is a very important part of financial planning. A general insurance company offers insurance policies to secure health, travel, motor vehicle, and home.

Why do we have compulsory insurance?

2. Why is it compulsory? Third party personal insurance is compulsory so compensation for loss is not dependent on the means of the person who caused the loss. Without CTP insurance, compensation may not be available equally to all parties who are entitled to some form of compensation.

Is public liability insurance compulsory in Nigeria?

The law provides that every public building must be insured against liability in the case of loss, damage to property, death or bodily injury that may be caused by collapse, fire, earthquake, storm or flood.

Is marine insurance compulsory in Nigeria?

Marine Insurance (Cargo)

Individuals and organisations that regularly engage the use of marine transportation are required to obtain marine insurance. It covers for losses that may occur as a result of marine adventures, from the use of vessels and yachts as a means of transportation.