Sovereign Trust Urges Motorists to Move Beyond Basic Third-Party Insurance

By LOVETH-AZODO CHIJIOKE, Lagos

As the cost of vehicle repairs continues to rise, Sovereign Trust Insurance Plc has called on Nigerian motorists to look beyond the statutory third-party motor insurance policy and embrace enhanced insurance cover that offers broader financial protection.

The insurer said while third-party insurance satisfies the legal requirement for vehicle owners, many motorists remain unaware that the policy does not provide compensation for damage to their own vehicles in the event of an accident, leaving them exposed to significant financial losses.

Speaking on the company’s Enhanced Third-Party Motor Insurance policy, the Managing Director/Chief Executive Officer of Sovereign Trust Insurance Plc said motor insurance should go beyond regulatory compliance to providing meaningful financial protection when unforeseen events occur.

According to him, the product was introduced to bridge the gap between conventional third-party insurance and comprehensive motor insurance by combining statutory third-party liabilities with limited protection for the policyholder’s own vehicle at an affordable premium.

“Insurance should not only help motorists comply with the law; it should also provide meaningful financial protection when the unexpected happens. Our Enhanced Third-Party Motor Insurance gives customers an opportunity to enjoy wider coverage at an affordable premium, making it an ideal option for motorists who want more than the basic statutory cover,” he said.

The company disclosed that for an annual premium of ₦25,000, the policy provides third-party property damage cover of up to ₦3 million, unlimited compensation for third-party bodily injury or death where applicable, and own-damage cover of up to ₦500,000 for the insured vehicle arising from accidental damage.

It added that the policy also supports policyholders in handling third-party claims and legal proceedings where necessary, giving motorists greater confidence on the road.

According to the insurer, the product is particularly suited for owners of private vehicles seeking wider protection without paying the higher premium required for comprehensive motor insurance.

The company noted that with millions of vehicles on Nigerian roads and accidents occurring daily, motorists should carefully assess the level of protection provided by their insurance policies, stressing that insurance should not merely fulfil legal obligations but also cushion the financial impact of unexpected losses.