What Are Compulsory Insurances?
Compulsory Insurances are insurances made obligatory by legislation to provide protection to the third party and the general public. Most of these insurances are not as expensive as you think. For instance, you can purchase a Third Party Motor Insurance for as low as N5,000.00. Not all insurances are compulsory, but most of the compulsory ones are to compensate the general public for loss, death or bodily injury.
Out of the mandatory insurances in Nigeria the following are the most prominent:
Builders’ Liability Policy (The Insurance Act 2003/The Lagos State Building Control Law 2010)
Occupiers’ Liability Policy (as above)
Employers’ Liability Policy (Group Life)
Employers’ Liability Policy (Workmen’s Compensation Act 1987 – Now repealed)
Healthcare Professional Indemnity Policy (The NHIS Act 1999)
Motor Third Party Liability Policy (The Insurance Act 2003)