In Nigeria, third party auto insurance policy is compulsory because it protects car owners from losses caused by their cars on other people.
Third party auto insurance is designed to make an injured party “whole” as a result of a covered accident. Damage to vehicles and other property can be expensive to repair or replace, as well as the cost of medical needs resulting from an accident. If the responsible party does not carry adequate coverage, the injured party would have little choice but to pursue a lawsuit.
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