INSURANCE LAW COURSE CODE - CIL.

342 SESSION: 2023/24

LECTURER: I. P. ENDELEY Esq.

TOPIC
MOTOR VEHICLE INSURANCE
INTRODUCTION
Motor vehicle insurance is also referred to as automotive insurance. It refers to a
contract by which an insurer assumes the risk of, or any loss the owner or
operator of a vehicle may incur through damage to property or persons due to an
accident. The increased vehicular and human traffic on the roads have
significantly increased the nature and scope of risk to which motorists and
pedestrians are exposed. The occurrence of accidents caused by vehicles is
escalating from time to time. For this reason, the loss of lives, bodily injuries, and
damages to properties caused by vehicle accident are creating social problem,
much so that it is necessary to establish a system for facilitating the provision of
emergency medical treatments to victims of vehicle accidents, and to require
owners of vehicles to have third party insurance coverage against third party risks.
Motor vehicle insurance is the most popular type of insurance in Nigeria and
dominated the insurance business in the fifties. It comprises of the Act Policy,
Third party policy, third party and theft policy and comprehensive insurance
policy.

DEFINITION OF MOTOR VEHICLE: Section 2 (1) of the motor vehicle (third party
insurance) Act defines a motor vehicle as a vehicle propelled by mechanical power
other than a vehicle constructed to run on rails and includes motor cycles. It
extends to all vehicle propelled by mechanical power including trucks, low
loaders, bulldozers, caterpillars and other heavy duty vehicles designed to move
on highways
USER OF VEHICLE: A person is said to use a vehicle only when he is in charge of or
driving it, controlling it and managing it on a public road. The risks covered by the
Act relate to any liability which may be incurred by the insured in relation to the
death of or bodily injury to any person occasioned by or arising out of the use of a
motor vehicle covered by the policy.
EXEMPTIONS Certain categories of persons are exempted from liability under the
Act. Such persons exempted from cover include: (i) injuries sustained or death
arising out of and in the course of employment of the insured employee or
(ii)persons in a passenger vehicle on hire or reward in respect of the death of or
bodily injury of persons being carried (iii) any contractual liability Persons who are
carried in a motor vehicle gratuitously are not covered by the Act. In Lion of Africa
Insurance Co Ltd v Anuluoha (972) AIINLR 467 Lewis JSC stated, it is only if the
person is being carried for hire or reward that an insured must be covered by a
policy. In other words so far as the insurers are concerned, it is in their own
interest to show that the passenger is not being carried for hire or reward and in
our view the basic contention of the defendant is right...’ The Supreme court
stated that the obligation to satisfy judgement obtained by a third party, imposed
under S:10(1) of the Act on the insurer relates to judgement in respect of
liabilities required to be covered by a policy for the purposes of the Act issued
under the provisions of S:1(b). The third party does not have direct right of
action against the insurer to compel him to satisfy a judgement in respect of a
liability covered by the policy but which is not required to be so covered.
Third Party in this case is any person other than the insured person‘s family, the
driver or any person employed on a vehicle to which an insurance policy applies at
the time when an accident occurred giving liability under such insurance policy.

FORMS OF MOTOR VEHICLE INSURANCE

Motor Vehicle Insurance comprises of the following:
a) the Act Policy
b) Third Party Policy
c) Third Party, Theft Policy
d) Comprehensive Insurance Policy
These vary both in their underlying legal principles and the nature of the risk
covered. It includes.
THE ACT POLICY: This is compulsory for all vehicles. It ensures the owner of the
vehicle against liability incurred in respect of death or bodily injury caused to
third party while using the vehicle or permitting the use of the vehicle. It is the
minimum insurance cover all motorist can get. It provides no protection to the
policy holder. Section 68(1) of the insurance Act 2003 provides that no person
should use or cause or permit any other person to use a motor vehicle on a road
unless the liability he may incur in respect of damage to the property of a third
parties is issued with an insurer under the Act. The person is also expected to in
addition to a liability of not less than N1, 000, 000 (section 68(2)) be insured
under the motor vehicle (third party) insurance Act. Any person convicted of
contravening this section is liable to a fine of N250, 000 and imprisonment of one
year or both.
MOTOR VEHICLE (THIRD PARTY) INSURANCE ACT: The motor vehicle (Third party
Insurance) Act cap M22 laws of the Federation of Nigeria 2004. Act was enacted in
1945 and commenced in 1950. Section 3(1) of the Act provides that subject to the
provisions of the Act no person should use or cause or permit any other person to
use a motor vehicle where there is in force in relation to the user of the motor
vehicle by such a person or such other person as the case may be such policy of
insurance or such security in respect of third party risks as complies with the
provision of the Act. Section 3 (2) provides that any person who acts in
contraventions of this Act shall be liable on conviction to a fine of four hundred
naira or imprisonment of one year or both such fine and imprisonment and the
persons shall be disqualified from holding or obtaining a driving license. Thus, this
is a compulsory insurance policy in Nigeria which is the legal minimum level of
motor insurance cover. The third party motor insurance covers death or bodily
injuries and damages of the property of a third party caused by the use of the
insured vehicle.
THIRD PARTY POLICY The third party insurance policy of the Act provides
indemnity for death and bodily injuries occasioned to third parties or their
properties. This could be movable or immovable property or tangible or intangible
objects. Section 15 of the Act provides that no settlement made by an insurer in
respect of any claim which might be made by a third party in respect of any
liability that is required to be covered by a policy issued under the provisions of
the motor vehicle, (third party insurance) Act is valid unless such third party is a
party to such settlement. It is similarly provided that a policy issued under the Act
shall remain in force and be available to third parties not withstanding the death
of any person insured under such policy as if such insured person were still alive
THIRD PARTY FIRE AND THEFT POLICY:
The policy consists of the characteristic of both the Act and the third party policy
as well as loss or damage to the vehicle of the insured resulting from fire or theft.
It also includes legal fees incurred in defending actions emanating from an
accident for which a claim is being made as well as towing fee for conveying the
damaged or stolen vehicle from the scene of accident or place of discovery to the
nearest mechanic for safe place of custody

COMPREHENSIVE POLICY:
This is more extensive than the earlier discussed motor vehicle insurance policy. It
is designed to cover wider risk including loss or damage caused to the insured
vehicle through accident, collusion, fire and theft including the fitted accessories
of the said vehicle. It also includes any cost or expenses incurred with the
insured’s consent and medical expenses incurred in connection with any bodily
harm from the accident by the insured, his driver or any occupant of the insured
vehicle. The comprehensive motor insurance policy covers the loss or damage to
insured vehicles resulting from fire, theft, vandalism, accidental damage, or
collisions. Coverage also includes legal liability for death, bodily injury or damage
to the property of third parties arising from the use of insured vehicles. Additional
benefits may include but not limited to loss of use resulting from an accident, the
installation of an auto tracking device, legal liability arising as a result of accidents,
vandalism, malicious damage, and damage due to riot and civil unrest.

LIMIT OF COVERAGE Motor vehicle insurance policy cover obtained in Nigeria is

inapplicable to accidents, damage or loss which occurs outside the territorial
boundaries of Nigeria except a wider cover is obtained to extend to extra
territorial damage or loss. Since the focus of the motor vehicle insurance policy is
to provide cover for tortuous liability, it excludes contractual liability. Where an
insured vehicle is driven by a person without license to drive, it is excluded from
coverage by the policy. Liability arising from radioactive materials or nuclear or
damage or loss due to acts of God e.g. thunder, volcanic eruptions, earthquake or
war which result in injury or damage is not covered by the motor vehicle
insurance policy.
In line with the above the Act stipulates that:
1, No person shall drive or cause or permit any other person to drive a vehicle on a
road unless he has a valid vehicle insurance coverage against third party risks in
relation to such vehicle.
As to restrictions on the scope of application of insurance policy, Certificate
issued in accordance with this proclamation shall not make restrictions on the
obligations of the insurer to pay compensation on grounds of:
1. the age, physical or mental conditions of the person driving the vehicle;
2. the conditions, the horsepower, cylinder capacity or value of the vehicle;
3. the number of persons, the carrying of any particular apparatus, weight or
physical characteristics of the goods, that the vehicle carries; or
4. the time at which or the area within which the vehicle is used.

In line to the above legal orientation of vehicle insurance against third party risks,
according to article 6(1), any condition in vehicle insurance policy providing; no
liability shall arise under such policy; or any liability so arising shall cease in the
event of some specified thing being done or omitted to be done after the happening
of the event giving rise to a claim under the policy, shall be no effect.
Nothing in sub-article (1) of this article shall be deemed to render void any
provision in any such policy requiring the person insured to repay the insurer any
sum which latter may have become liable to pay under the policy, and which have
been applied to the satisfaction of the claims of third parties.

As it is clearly indicated under articles 9, 12, and 13 of the proclamation, an

insurance company shall issue a certificate of insurance to third person at the same
time it issues an insurance policy and insurance stickers. The absence of an
insurance sticker shall constitute a prima facie evidence that the vehicle has not
been insured and the police shall have the power to detain such vehicle until the
appropriate certificate of insurance presented.
When we come to the obligation of the insured, article 15 provides;
The Insured shall secure insurance coverage for liabilities arising from;
1, collision, roll, fire or explosion caused by the insured vehicle; and
2, the fall of objects carried by the vehicle, its accessories or tools being used in
connection with the vehicle.
As to the extent of liability, article 16 clearly stipulates that:
1. the amount of compensation due to damage caused by an insured vehicle shall
exceed

FOR FURTHER READING AND REFERENCINGS ON INSURANCE LAW, REFER TO THE

FOLLOWING TEXTS AND MATERIALS FROM THESE NOTES HAVE BEEN
RESEARCHED.
1. Chartered Insurance Institue of nNigeria Study Manual, 2016
2. Irukwu,J.O. Insurance Law and Practice in Nigeria ( Ibadan: Heinman Education Books.
(Nig) Plc.1999
3. Yerokun O, Insurance Law In Nigeria.
4. Adesanya,M.O and Oloyede, Business Law in Nigeria
5. Alobo, E.E. Business Law and Practice. 2nd Edition
6. Articles on Insurance on the Internet
INSURANCE LAW COURSE CODE - CIL.342 SESSION: 2023/24
LECTURER: I. P. ENDELEY Esq.

TOPIC
FIRE INSURANCE
Fire insurance policy is a contract of indemnity aimed at insuring property against
the risk of fire. It is subject to the general principle of insurance and provides for
specific sums to be paid to the insured in case of damage occasioned by fire,
lightning and explosion. It usually covers cost of replacement, repair or
reconstruction of the damaged property and other damages traceable to the fire.
TYPE OF FIRE INSURANCE
Fire insurance policies are classified into the following:
(a) Specific Policy: The insurer is liable to pay an agreed amount to the insured on
the occurrence of the fire insured against. The insurer’s indemnity is not tied to
the actual value of the property.
(b) Comprehensive Policy: It indemnifies the insured against loss by fire and other
perils including burglary, theft and other risks. The insured could also get payment
for consequential loss of profit attributable to the fire incidence or other risks
insured against.
(c)Valued Policy: In this type of policy, the amount to be paid by the insurer to the
insured on the occurrence of the incident, insured against is agreed with the
insured irrespective of the scope of the loss.
(d) Re – Instatement Policy: The insurer is required to pay for the cost of replacing
the damaged property. Subject to the terms of the insurance policy, the insurer
could exercise the option of reinstating the property instead paying out cash to
the insured.
NECESSITY FOR FIRE INSURANCE POLICY
Fire incident could result in catastrophic consequences due to bush burning faulty
electrical wiring, arson, lightning and domestic fire incidents there is need for
insurance coverage as it contributes to deaths, injuries and destruction of
property. In Nigeria for instance, there have been series of fire outbreaks in the
last decade adversely impacting on the economy to the tune of trillions of Naira in
our major cities like Abuja, Lagos, Ibadan, Kano, Port Harcourt, Aba to mention a
few. The types of property that are usually affected by fire damage and therefore
attract need for insurance coverage are dwelling houses, shops, hospitals,
factories, warehouses, industrial building, places of worship markets, educational
institutions etc. Also vulnerable to fire damages are the contents of such
property. It therefore becomes important for a person to avail himself of the
benefit of ensuring that he is protected in the event of fire risk. Fire insurance
provides security for these property as it involves an Insurance Company agreeing
to pay a certain amount equivalent to the estimated loss caused by fire to the
property owner, within the time specified in the contract.

INSURER’S LIABILITY:
For the insurers to be liable on a fire insurance policy, there must be the following:
i) Actual Ignition. Insurers are only liable where there has been actual
ignition as was in the case of Harris v Poland (1941) 1K.B 462. Here it
was established that ‘‘where there has been damage , a direct
consequence f tge ignition of other property not intended to be ignited,
there is a liss by fire’’ In Austin v Drewe (1816) 6 Taunt 436 a great heat
spoilt a quantity of sugar as a result of the closure of a register in the
chimney. The insurer was held not liable under the insurance policy
because there was no ignition. In Everett v London Assurance (1865)
CBNS 126, a house insured against fire was damaged as a result of the
fire in a factory about half a mile away. It was held that the damage was
not caused by the insured risk and the insurers were not liable. In Harris
v Poland (1941) 1KB 462 The Plaintiff hid and forgot her jewellery in her
grate under the coal. She lit the fire and the jewellery was damaged. It
was held that she could recovered under a fire policy. For the insurer to
 be liable under a fire insurance policy, there must be a causal connection
between the fire and the damage suffered by the insured. Ordinarily the
insurer is not liable to damage attributable to natural disasters but the
insured can extend the policy to cover risks arising from specific natural
occurrences.
ii) Excessive Heat: An insurer may be liable under proximate rule.
Generally, Explosion is an excepted peril in the policy, except where the
explosion is caused by fire. Re Hooley Hill Rubber Co, (1920) 1KB 257;
Curtis & Harvey v North British (1921) A.C 303.
Where fire follows explosion or explosion follows fire, insurer will be
liable.
iii) Lightening: Excepted peril except where damage is caused by ignition
resulting from lightening. If there is no ignition then there is no loss by
fire.

BENEFITS OF FIRE INSURANCE POLICY

The benefit of a fire insurance policy is restoration of the insured as much as
possible to the same position as he was before the occurrence of the risk insured
against. It involves either of the following: (i) In case of a partial loss, the insured
is entitled to payment for repairing or replacing the property damaged by fire.
(ii)The insurer could undertake to fix the damaged property on its own instead of
paying the insured the cost of restoration.
(iii) Provisional housing could be provided to the insured in case of loss of a home
or business premises. The insurance company may pay for the provisional
housing where the insured can stay for a period of time whilst repairs of his
building is undertaken.
(iv) having a fire insurance policy may prevent financial disaster as it would cover
the financial losses. It saves as a safety net which is absolutely necessary
(iii) The cover could be extended to cover other perils subject to the payment of
an agreed premium.
It therefore means that fire insurance policy covers the holder against loss of or
damage to the insured property resulting from an accidental fire and also enables
the owner of the property to recover the actual value of his property in the event
of damage caused by fire as stipulated by the policy.
It can be concluded that Fire insurance policies are a necessity due to the ever
present danger of fire outbreak. It is necessary to call the insurance companies as
soon as the risk insured against occurs in addition to complying with all the
procedural requirements.
It is however trite law that for the insurer to be liable on the policy there has to be
actual ignition. The insurer’s liability only arises in a fire insurance contract when
there is a causal connection between the fire and damage complained about. The
insurer is not ordinarily liable for damages arising from natural disaster induced
fire but an insured can extend his cover to extend to cover specific natural disaster
related damage. The insurer is only liable to the insured for the actual risk
covered.

FOR FURTHER READING AND REFERENCINGS ON INSURANCE LAW, REFER TO THE

FOLLOWING TEXTS AND MATERIALS FROM THESE NOTES HAVE BEEN
RESEARCHED.
7. Chartered Insurance Institue of nNigeria Study Manual, 2016
8. Irukwu,J.O. Insurance Law and Practice in Nigeria ( Ibadan: Heinman Education Books.
(Nig) Plc.1999
9. Yerokun O, Insurance Law In Nigeria.
10. Adesanya,M.O and Oloyede, Business Law in Nigeria
11. Alobo, E.E. Business Law and Practice. 2nd Edition
12.Articles on Insurance on the Internet
INSURANCE LAW COURSE CODE - CIL.342 SESSION: 2023/24
LECTURER: I. P. ENDELEY Esq.

TOPIC:

LIFE ASSURANCE (INSURANCE) POLICY

Life Assurance is the contract of insurance in which one party agrees to pay a
specified sum of money on the happening of a specific event. It is also defined in
Section 97 of the Insurance Act 2003, as any instrument by which the payment of
money is assured on death or the happening of any contingency being the
termination of the human life. It is contingent upon the duration of human life in
consideration of periodic payment of premium. In Nigeria, there is at the
moment no specific statute regulating life insurance, but it is basically covered
under the Insurance Act 2003 which provides for all classes of insurance including
life and non-life insurances. Life assurance is so called because of h certainty of
the event of death which is bound to happen with the only uncertainty around it
being he actual time of its occurrence. The concept of life insurance was
conceived to ensure that dependants are not rendered destitute on the death of
their “bread winner”. Essentially a life Assurance policy, though a contract
between the named insured and the Insurance company, ensures the insurance
company agrees to pay an agreed sum of money to the insured’s named
beneficiary/beneficiaries, mainly to assist the surviving family members in
overcoming the burden of the death of the breadwinner. Also note that may be
procured by large employers and government employers may offer group life
insurance and where the employee wishes to obtain additional life insurance from
the employer’s insurance company, they can do so at a reduced rate. Life
insurance policies often include exclusion clauses and limiting terms to the effect
that the insurer shall be excluded from liability on the occurrence of specified
incidents including suicide, terrorist attacks war, riot, fraud and earthquake.
Life assurance contract is not a contract of indemnity but is valued and a
predetermined sum of money payable on the happening of a contingent event.
The common law is clear on its approach that there is no amount of monetary
compensation that will be enough for the loss of human life or indeed the
replacement of human limbs.
A life assurance contract is a long-term contract, normally for 10,20, or 30 years,
whereas a non-life insurance is from year to year.

CLASSIFICATION OF LIFE INSURANCE:

Life insurance is extended to cover saving up funds for future use by the policy
holder and thus, is classified into three categories: (a) Whole life insurance, (b)
Endowment insurance and, (c) Term insurance.
WHOLE LIFE ASSURANCE: It provides for the payment of a specified sum of
money to named beneficiaries on the death of the life insurance in consideration
of an agreed premium as consideration which may be paid periodically or as lump
sum. It is a medium of providing for ones dependants in case of premature death
which is a necessary end for all mortals. The agreed premium in whole life
insurance may be paid periodically or as a lump sum.
ENDOWMENT INSURANCE: It provides for the payment of a stipulated sum
when the life insured attains a specified age or on the death of the insured
whichever occurs first. Endowment insurance apart from being a viable
arrangement for one’s dependant, could also provide substantial savings for aged
insurer.
TERM INSURANCE: It is a short term insurance transaction where the insurer
undertakes to pay the insured sum on the death of the insured within the term
stipulated in the insurance policy. It differs from the endowment insurance
because the sum insured cannot be paid unless the insured dies within the term
stipulated in the policy. It is usually recommended for creditors wishing to insure
the life of their debtors and persons engaged in hazardous activities. It is also to
be noted that the sum insured cannot be paid unless the insured dies within the
term stipulated in the policy. Thus it is usually recommended for creditors
wishing to insure the life of their debtors and persons engaged in hazardous
activities.
It is important to state that Life insurance is not a contract of indemnity. Insurable
interest

INSURABLE INTEREST IN LIFE ASSURANCE: A person seeking to take out an

insurance policy on the life of another must establish that he has an insurable
interest in the life insured. Section 56(1) of the Insurance Act 2003 provides that a
policy of insurance made by a person on the life of any other person or on any
other event whatsoever shall be null and void where the person for whose benefit
or on whose account the policy of insurance is made has no insurable interest in
the policy of insurance or where it is made by gaming or wagering. Section 56 (2)
of the insurance Act 2003 also provides that a person shall be deemed to have an
insurable interest in the life of any other person or in any other event where he
stands in any legal relationship to that person or event or be prejudiced by death
of that person or the loss from the occurrence of the event. This means that for a
life insurance contract to be valid the person taking out the policy must be seen to
have insurable interest in the life assured at the time of taking he policy. The
proof of the interest is based on the relationship between the assured. A
husband for instance has an insurable interest in the life of his wife and vice versa.
See Griffiths v. Fleming (1909) 1 KB 809. However, in the case of Halford v. Kymer
(1830)30 A&C.724 and Attorney General v. Murray (1904) 1K.B 165, it was held
that a father has no insurable interest in the son’s life. It also the position of the
law that every wife has insurable interest in the life of her husband. In Reed v.
Royal Assurance Co.(1795)Peke Add Cas.70. where a wife insured her husband’s
life and when he died, she set out to claim the sum insured proving that the
husband was entitled to the interest on a large sum of money on his death. the
court stated that the wife does not need t prove she was interested in her
husband as the fact that she was properly married to her husband was enough.
This also goes for the husband who is properly married to the wife. A different
position is assumed in the case of other relatives, where it has to be proven that
the relationship goes beyond mere love and affection. For instance, between
father and son, brother and sister etc, insurable interest must be proved by
evidence of dependency ie a liability to maintain.
The insurance Act extends legal relationship to relationship which exists between
persons under customary law or Islamic law where one person assumes
responsibility for the maintenance and care of the other. Since a life insurance is
not a contract of indemnity, insurable interest is required to exist only at the time
of the contract and not thereafter. This is in contrast to indemnity policies where
insurable interest must exist at the time of the loss. See Dalby v India and London
life Assurance Co. (1854) 15 CB 365. Where an insured or beneficiary facilitates
the happening of the event so he can claim from the insurer on grounds of public
policy, the insurance is adjudged void.
It must be noted that special provisions apply including for instance a suicide
clause which serves to nullify the policy if the insured commits suicide within a
specified time from the policy. Where an insured or beneficiary facilitates the
happening of the event so he can claim from the insurer on grounds of public
policy, the insurance is adjudged void.
Therefore, it can be concluded that Life insurance policy is founded on the high
premium placed on human life, its sanctity and the need to ensure that it is well
provided for on the occurrence of any event that tends to compromise it. The
requirement of insurable interest is to regulate insurance transaction and insulate
it from the acquisition of meddlesome insurance coverage.

PERSONAL ACCIDENT INSURANCE:

Accident insurance refers to accidental death and dismemberment insurance that
involves the payment of a specified sum of money on the death or injury of the
insured. The payment could be lump sum or installment. Personal accident
insurance involves a person or group of persons taking out an insurance policy to
provide for the payment of money to themselves or members of their family in
the event that they suffer partial, total, temporary or permanent physical
disability or injury in an accident that is not staged or contrived but is caused by
an accidental occurrence. A singer may insure her voice and a footballer may
insure his legs against injury while playing football.
SCOPE OF COVERAGE PROVIDED: The coverage provided by personal accident
insurance includes the provision of compensation to the insured person due to
death arising from accident coverage, it is also provides for temporary and
permanent disability and medical expenses of the insured and his beneficiary. The
coverage could be extended to sever treatment in other jurisdictions. The scope
of coverage provided and the scale of benefits accruing to the insured varies from
one insurer to the other.
LIMITS OF COVERAGE. Most personal accident insurance contracts unlike life
insurance policies do not cover death arising from natural causes or illness. It also
excludes death or injury arising from willful exposure to danger or injury, alcohol
abuse induced injury, pre existing medical condition induced injury e.g epilepsy
and drug abuse related injuries death or disability. This is because it relates to
“accident” based death or disability or medical expenses.
INSURABLE INTEREST Every person taking out a personal accident insurance policy
must have an insurable interest in the health or life sought to be insured.
TYPES OF PERSONAL ACCIDENT POLICIES. There are several types of personal
accident policies. They include: i. Cash for accident: This involves the payment of
cash to the insured when he suffers an injury. It is to assist the insured to pay his
medical and ancillary expenses. ii. Accidental death: Where death occurs as result
of auto crash, fall or accidental occurrence, the beneficiaries of the insurance
policy are entitled to be paid an agreed sum of money to cushion the effect of the
death of their benefactor. It is distinguishable from life insurance policy as it is
restricted to accidental deaths and not death from natural causes or illness. iii.
Disability insurance: where the injury is so severe as to disable the insured and
deprive him of the capacity to work, the disability insurance policy is designed to
provide sufficient coverage for the insured to have an upkeep and take care of his
basic necessities.

PERSONAL ACCIDENT INSURANCE RISK CATEGORIES. As earlier observed,

personal accident insurance provides coverage for accidental losses which result
in loss of life, dismemberment, loss of speech, hearing or sight. There are however
persons who by the nature of their employment are predisposed to accidental
death and disability due to their risk situations. They include individual who - (a)
are deployed to war zones; (b) perform manual labor in construction sites
(c)manually operate tools machines and equipment; (d) travel frequently; (e) live
or work in crime endemic areas; (f) work with hazardous chemicals.
The individuals are classified into:
A) HIGH RISK: This includes individuals who work in underground mines, with
explosives and electricians who deal with high tension electricity supply, circus
performers, high rise construction, soldiers, journalist and other people
functioning in war zones and law enforcement agents working in crime endemic
zones. Doctors and medical personnel’s working in infectious disease endemic
regions e.g Human Immune Virus (HIV) Cholera and Hepatitis are includes in this
category. The insured is required to pay higher premiums
B) MEDIUM RISK: Individuals who drive heavy trucks engineers who function as
supervisor, builders, mechanics, professional athletes and veterinarians. The rate
of premium payable by the insured is lesser than what is required to be paid by
an individual in the high risk category.

C) LOW RISK: Individuals associated with low risk have comparative lesser rate of
premium payments include teachers, bankers, lawyers, accountants, architects
and individuals working in corporations with standardized safety regulations.
Categorization of risk is dependent on the environment where the insured is
operating or residing and its propensity for accidents.
It is important to note that Personal accident insurance is often utilized as a stop
gap policy to compliment life insurance as it is necessary to protect loved ones
and oneself financially in case one suffers an accidental death, injury or disability.
Personal accident insurance involves a person or group of persons taking out an
insurance policy to provide for payment of money to themselves or members of
their family in the event that they suffer partial, total, temporary or permanent
disability. 3. To benefit from personal accident insurance the accident must not be
staged or contrived or be traceable to willful exposure to danger, injury or alcohol
induced injury, drug abuse related incident or pre-existing medical condition as it
only covers accidental occurrences.
FOR FURTHER READING AND REFERENCINGS ON INSURANCE LAW, REFER TO THE
FOLLOWING TEXTS AND MATERIALS FROM THESE NOTES HAVE BEEN
RESEARCHED.
13. Chartered Insurance Institue of nNigeria Study Manual, 2016
14. Irukwu,J.O. Insurance Law and Practice in Nigeria ( Ibadan: Heinman Education Books.
(Nig) Plc.1999
15. Yerokun O, Insurance Law In Nigeria.
16. Adesanya,M.O and Oloyede, Business Law in Nigeria
17. Alobo, E.E. Business Law and Practice. 2nd Edition
18.Articles on Insurance on the Internet