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SCOPE OF COVER

WHEREAS the insured by a proposal and declaration dated as stated in the Schedule which shall form the basis of this contract and is deemed to be incorporated herein has applied to the Company for the insurance hereinafter contained and has paid the premium as consideration for such insurance in respect of accident loss or damage occurring during the period of insurance.

 NOW THIS POLICY WITNESSTH:

That subject to the terms, exceptions and conditions contained herein or endorsed or otherwise hereon.

SECTION 1 – LIABILITY TO THIRD PARTIES
Indemnity to other persons

1.1.1 Subject to the limits of liability the Company will indemnify the insured in the event of accident caused by or arising out of the use of the motor Car against all sums including claimant’s costs and expenses which the insured shall become legally liable to pay in respect of:

1. Death or bodily injury to any person except where such death or injury arises out of and in the course of the employment of such person by the insured and excluding liability to any person being conveyed in or on the Motor Car unless such person is being conveyed by reason of and in pursuant of a contract of employment.
2. Damage to property other than property belonging to the insured or held in trust by or in the custody or control of the insured or any member of the insured’s household.

1.1.2 The Company will pay all the cost and expenses incurred with its written consent in the terms of and subject to the limitations of the indemnity granted by this Section to the insured, the Company will indemnify the Driver who is driving the motor Car on the insured’s order or with his permission provided that such driver;

1. is not entitled to indemnity under any other Policy
2. shall as though as he were the insure observe fulfill and be subject to the terms,  exceptions and conditions of this Policy in so far as they can apply

1.1.3  In terms of and subject to the limitations of the indemnity which is granted by this Section in connection with the Motor car the Company will indemnify the insured whilst personally driving a private Motor Car (but not a Motor Cycle) not belonging to him and not hired under a hire purchase agreement.

Legal Fees and Expenses
1.1.4 In the event of death of any person entitled to indemnity under this Section the company will in respect of the liability incurred by such person indemnify his personal representative in the teams of and subject to the Policy limitations of this Section provided that such representatives shall as though they were the insured observe, fulfill and be subject to the terms, exceptions and conditions of this policy in so far as they can apply

1.1.5  The Company may at its own option arrange for representation at any inquest or fatal inquiry in respect of any death which may be the subject of indemnity under this Section and undertake the defense of proceedings in any court of law in respect of any act or alleged offense causing or relating to any event which may be the subject of indemnity under this Section.

SECTION 11 – LOSS OR DAMAGE

1.2.1   The Company will indemnify the insured against loss or damage to the Motor Car and/or its accessories whilst thereon.

1. By accidental collision or overturning consequent upon mechanical breakdown
2. By fire, external explosion, self-ignition or lightening or burglary, housebreaking or theft
3. By malicious act
4. Whilst in transit (including the process of loading and unloading incidental to such transit) by road, rail inland waterway lift or elevator

1.2.2 The Company shall not be liable to pay:-

1. Consequential loss, depreciation, wear and tear, mechanical or electrical break-downs, failures or breakages
2. Damage to tyres unless the Motor Car is damaged at the same time

1.2.3 If the Motor Car is disabled by reason of loss or damage as described in this section the Company will subject to the limits of liability bear the reasonable cost of protection and removal to the nearest repairers and of delivery within the country where the loss or damage was sustained.

1.2.4 The insured may authorize the repair of the Motor Car necessitated by the damage for which the Company may be liable under this Policy provided that:-

1. the estimated cost of repair does not exceed the Authorized repair limit
2. the Company is furnished forthwith with detailed estimate of the cost and the insured shall give the Company every assistance to see that such repair is necessary and the   charge reasonable.

2. AVOIDANCE OF CERTAIN TERMS AND RIGHT OF RECOVERY

If the Company is obliged by the law of any country within the Geographical Area to pay an amount for which the Company would not otherwise be liable under this Policy the Insured shall repay the amount to the Company.

3.GENERAL EXCEPTIONS

The Company shall not be liable in respect of

1. any accident loss damage or liability caused or incurred to the third party

• outside the Geographical Area
• whilst any Motorcycle in respect of which indemnity is provided by this Policy is

• being used otherwise than in accordance with the use permitted in the effective Certificate of Insurance.

2. any accident loss damage or liability (except so far as is necessary to meet the requirements of the Legislation) directly or indirectly proximately or remotely occasioned by contributed to by or traceable to or arising out of or in connection flood typhoon, hurricane, volcanic eruption, earthquake or other convulsion of nature invasion the act of foreign enemies hostilities or warlike operations (whether war be declared or not) civil war, strike, riot, civil commotion, mutiny rebellion, revolution, insurrection, military or usurped power or by any direct consequences of any of the said occurrences and in the event of any claim hereunder the third party shall prove that the accident loss damager or liability arose independently of and was in no way connected with or occasioned by or contributed to by or traceable to any of the said occurrences or any consequence thereof and in default of such proof the Company shall not be liable to make any payment in respect of such a claim.

3. any liability which attaches by virtue of an agreement but which would not have attached in the absence of such agreement.

4. any accident loss or damage to any property whatsoever or any loss or expense whatsoever resulting or arising therefrom or any consequential loss.

5. any accident loss or damage to any property whatsoever or any loss or expense whatsoever resulting or arising therefrom or any consequential loss to the third party.

6. any accident loss damage or liability directly or indirectly caused by or contributed to by or arising from nuclear weapons material.

 

4. CONDITIONS

This Policy and the Schedule shall be read together and any word or expression to which a specific meaning has been attached in any part of this policy or of the schedule shall bear the same meaning wherever it may appear.

 

1. CLAIMS NOTIFICATION – Notice shall be given in writing to the Company immediately upon the occurrence of any accident or loss or damage and in the event of any claim to the third party every letter writ summons and/or process shall be forwarded to the Company immediately on receipt by the insured. Notice shall also be given in writing to the company immediately the insured have knowledge of any impending prosecution, inquest or fatal inquiry in respect of any occurrence which may give rise to a claim under this policy from the third party.
2. ADMISSION OF LIABILITY – No admission, offer, promise, payment or indemnity shall be made or given by or on behalf of the third party without the written consent of the Company which shall be entitled if so desired to take over the conduct in the name of the insured the defense or settlement of any claim or to prosecute in the name of the insured for its own benefit claim for indemnity or damages or otherwise and shall have full discretion in the conduct of any proceedings in the settlement of any claim and the insured shall give all such information and assistance as the Company may require.
3. AVOIDANCE OF LIABILITY AFTER SETTLEMENT – At any time after the happening of any event giving rise to a claim or series of claims under Sub-section 1.1.1(ii) of Section 1 of this Policy the Company may pay to the third party the full amount of the Company’s liability under that Sub-Section and relinquish the conduct of any defense settlement or proceedings and the Company shall not be responsible for any damage alleged to have been caused by the insured in consequence of any alleged action or such defense settlement or proceedings or of the Company relinquishing such conduct nor shall the Company be liable for any costs or expenses whatsoever incurred by the insured or any other person after the Company shall have relinquished such conduct.
4. YOUR DUTY TO PREVENT LOSS OR DAMAGE – The insured shall in respect to any Motor cycles described in the Schedule hereto take all reasonable steps to safeguard it from damage to the third party property for the purpose described in the Policy and Schedule
5. CHANGE OF RISK – Every change in the circumstances affecting the risk insured or the insured’s interest in any Motor Car described in the Schedule hereto shall be immediately notified to the Company in writing. No transfer of interest in this Policy shall be valid until the Company shall have agreed thereto in writing.
6. CANCELLATION OF POLICY – The Company may cancel this Policy by sending seven days notice by registered letter to the insured at his last known address and in such event will return to the insured the premium paid less the pro rata portion thereof for the period the Policy has not been in force.
   The Policy may be canceled at any time by the insured on seven days notice and (provided no claim has arisen during the then current period of insurance) the insured will be charged for the cover provided up to the date we receive our Certificate of insurance according to the Company’s short period rates and the balance of your premium shall be paid to you. If a claim has arisen during the period of insurance of which we are liable to compensate, no refund of premium shall be made.
7. OTHER INSURANCE – If at the time a claim arise under this Policy there is any other existing insurance covering the same loss, damage, or liability the Company shall not be liable to pay or contribute more than its ratable proportion of any loss, damage, compensation costs or expenses.
8. FRAUD – All rights under this Policy will be forfeited if any claim made by you through the third party or anyone acting on your behalf use a fraudulent means or device to obtain any benefit or protection under this Policy.
9. ARBITRATION – If any differences arises as to the amount of any loss or damage (liability being otherwise admitted) such differences shall independently of all other questions be referred to the decision of the Arbitrator to be appointed in writing by the parties in difference and if they cannot agree upon a single Arbitrator to the decision of two Arbitrators one shall be appointed in writing by each of the parties within two calendar months after having been required so to do in writing by other party. In case either parties shall refuse or fail to appoint an Arbitrator within two calendar months after receipt of notice in writing requiring an appointment, the other party shall be at liberty to appoint a sole Arbitrator, and in case of disagreement between the Arbitrators the difference shall be referred to the decision of an Umpire who shall have been appointed by them before entering on the reference and who shall sit with the Arbitrators and preside at their meetings. The death of any party shall not revoke or affect the authority or power of the Arbitrator, Arbitrators or Umpire respectively: and in the event of death of an Arbitrator or Umpire another shall in each case be appointed in his stead by the party or Arbitrators (as the case may be) by whom the Arbitrator or Umpire so dying was appointed. The costs of the reference and of the award shall be in the discretion of the Arbitrator, Arbitrators or Umpire making the award. And it is hereby expressly stipulated and declared that it shall be a condition precedent to any right of action or suit upon this policy that the award by such Arbitrator, Arbitrators or Umpire of the amount of the loss or damage shall be first obtained.
10. DUTY TO COMPLY WITH POLICY CONDITIONS – The due observance and fulfillment of the terms, Conditions and Endorsements of this policy in so far as they relate to anything to be done or complied with by the insured and the truth of the statements and answers in the said proposal shall be conditions precedent to any liability of the Company to make any payment under this Policy.

 

TRANSFER OF INTEREST
If the Company shall consent to a transfer of interest in this Policy the period during which the interest was in the Transfer or shall not accrue to the benefit of the Transferee.

THIRD PARTY SECTION
N2,500.00 or 10% of the claim whichever is higher.

PAYMENT OF PREMIUM WARRANTY
The Insurance Act 2003 Part VIII Section 50(1) stipulates that the receipt of an insurance premium shall be a condition precedent to a valid contract of insurance and there shall be no cover in respect of an insurance risk, unless the premium is paid in advance.