Most Nigerians Don’t Know Their ₦15,000 Third-Party Policy Pays Out — Up to ₦1 Million

Ask most Nigerian drivers why they bought third-party motor insurance and the answer is the same: to avoid trouble with the authorities. The certificate goes in the glovebox, the policy is never read, and the assumption sets in that third-party cover does almost nothing — a compliance sticker, not real protection.

That assumption is wrong. Third-party is the statutory motor cover regulated by the National Insurance Commission (NAICOM) — the minimum the law requires you to carry — but it is not just a formality. Through My Insure Bank, a private-car third-party policy costs around ₦15,000 a year and pays out up to ₦1 millionfor damage you cause to a third party’s vehicle or property. The protection is built into the policy. The problem is that hardly anyone knows it is there.

“The cover Nigerians treat as a formality is, in fact, one that pays out — up to ₦1 million through My Insure Bank. Most drivers simply never find out their own policy works.”

What a third-party policy from My Insure Bank actually does

Third-party motor insurance covers your legal liability to other people — not your own vehicle. The part that matters most in day-to-day driving is third-party property damage: if you crash into someone else’s car, gate, shop front or other property, your policy pays for that damage rather than you. Bought through My Insure Bank, that is cover of up to ₦1 million standing behind you the moment an accident is your fault.

Put plainly: if you are at fault and you damage another person’s vehicle or property, your ₦15,000 policy will settle their claim up to ₦1 million — money that would otherwise come straight out of your pocket. That is true for the everyday knocks that fill Nigerian roads, from a dented bumper at a junction to a shattered shop window after a brake fails.

Why “insurance never pays” is a myth worth retiring

The deeper issue is trust. Many Nigerians believe insurance never pays out, so they buy the cheapest policy purely to be legal and expect nothing in return. But a policy you never try to use is not evidence that cover fails — it is simply an unmade claim. Third-party property-damage cover is what a valid policy is built to deliver, and through My Insure Bank that is up to ₦1 million you can actually call on.

The gap is information and process. Drivers don’t know the payout exists, and when something goes wrong they don’t know how to claim. That is the part a broker is meant to fix.

How to actually claim — through My Insure Bank

If you damage someone else’s vehicle or property and you hold a valid third-party policy bought through My Insure Bank, the claim is handled for you rather than left to chance:

• Report the incident from your phone — note the date, location and the other party's details, and send any photos.
• Our claims team logs it with your insurer and tracks it through to a decision, so you are not chasing paperwork alone.
• Where the insurer offers it, the third party is settled directly on an assisted, cashless basis — up to the ₦1 million limit — so the money does not come out of your pocket.

One important limit to be clear about: third-party cover pays for damage to other people. It does not repair your own car. If you also want your own vehicle protected — against accident damage, fire or theft — that is what a comprehensive policy adds, and it is worth comparing if your car is the kind you could not easily replace.

For now, the takeaway is simpler. The third-party policy already sitting in millions of gloveboxes is not just a formality. Through My Insure Bank it is up to ₦1 million of protection most drivers never knew they had — and knowing it changes what you do the moment an accident happens.