General insurance Compulsory Insurance

[Mataracy]

Following the great technological advances made during the two world wars, mechanical transport made rapid progress. But as the number of motor vehicles plying the road increased , so did the accident rate and subsequent death and injuries.

Injured third parties often could not obtain the damages to which they were entitled, as most motorists were without adequate funds to satisfy the judgement debts.

The reluctant outcry led, in Great Britain, to the introduction of the Road Traffic Act of 1930( Lol it has been long right?) Making third party insurance in respect of death or bodily injuries compulsory.

The act made it an offense for anyone to use or permit the use of a motor vehicle on a road unless there was in force a policy of insurance covering the liabilities of the motorist for death or bodily injuries to third parties arising from of the motor vehicle.

The usefulness of this legislation ensuring that money was available to compensate innocent victims injured or killed in road accident as recognized by the colonial administration who extent it to Nigeria in 1945 under different title: Motor Vehicle (Third Party Insurance ) Ordinance.

COMPULSORY INSURANCE ADVANTAGES
(1) It may be necessary for the protection of third parties.

(2) It eliminates some costs through simplified pricing and premium collextion procedure.

(3) The increase in the numbers of the insured ensures the operation of the law of large numbers.

At the same time Demerit includes:
(1) There is limitation of personal freedom to decide whether or not to insure.

(2) Over -simplified rating gives no encouragement to risk improvement measures.

(3) Procedure tends to become inflexible.

What is your take about this Compustory Insurance?
Your contribution can also help us.

 

[btaliat]

I think this type of insurance should be extended to some other countries especially the third tier countries. There are many disabled people on the street that are not catered for. Meanwhile majority of them is as a result of reckless driving of some drivers that are inexperienced. This insurance can be used to cater for those disabled.

 

[Mandy96]

The word “compulsory” makes it sound like it’s mandatory for one to have or buy it. Well I really do not understand the advantages but at the same time I can see some good things about it from what I read up there. I guess I case it’s safe to get it

 

[btaliat]

The word “compulsory” makes it sound like it’s mandatory for one to have or buy it. Well I really do not understand the advantages but at the same time I can see some good things about it from what I read up there. I guess I case it’s safe to get it

I even love the insurance policy because it is mandatory. If one see the bad things that those bad drivers do cause in the road, then one will agree that the policy should be truly made compulsory. This will reduce the rate of disability as a result of reckless driving in the public roads.

 

[Jamoflondon]

The world compulsory made it sound as if it was imposed on everyone to have it but at the same time it was for a particular reason because it would have sounded awkward no matter how good the importance is. But I think it still sound fair and it wasn’t a forever thing

 

[Wisdom01]

In my country it's not compulsory you go for any insurance , but I don't really like why they are making the accident insurance compulsory , because what if the driver of the car is not rich enough to pay the premium that have been stated , it's definitely not going to be a easy thing

 

[btaliat]

In my country it's not compulsory you go for any insurance , but I don't really like why they are making the accident insurance compulsory , because what if the driver of the car is not rich enough to pay the premium that have been stated , it's definitely not going to be a easy thing

I think making the insurance policy will reduce the way some drivers always drive recklessly on the road. There are some people that are not supposed to even be driving, so I think anyone who's not rich enough or even have experience won't be allowed to drive on the road. And this will invariably reduce the rate at which accident happens.

 

[Alexandoy]

From what I know the only compulsory insurance here is the house that is the collateral in a mortgage and the TPL for the car - that is the Third Party Liability. The fire insurance of the house is required by the bank while the TPL for the car is required by the land registration office for the annual renewal of the car.

 

[btaliat]

The insurance scheme is still available in most advanced countries even up till date. And to make the matter easier, it is compulsory for every vehicle user. This has reduced the way some inexperienced drivers use vehicles on the public roads.

However, there is need to hamper more on the disadvantages of the scheme. The fact that it gives the vehicle owners no right right to decide whether to insure or not makes it less democratic. Some people have not bought vehicle which would have reduced their stress, just because they know they don't have much to insure.


There should be a way the scheme can be done in order to let the insured person choose whether to insure or not. And there should be a way of making sure a vehicle user is certified as being sane to use public roads.