Vehicle insurance (also known as auto insurance , GAP insurance , car insurance , or motor insurance ) is insurance purchased for cars , trucks , motorcycles , and other road vehicles. Its primary use is to provide financial protection againstphysical damage and/or bodily injury resultingfrom traffic collisions and against liability that could also arise therefrom. The specific terms ofvehicle insurance vary with legal regulations in each region. To a lesser degree vehicle insurance mayadditionally offer financial protection againsttheft of the vehicle and possibly damage to thevehicle, sustained from things other than trafficcollisions.
Evolution of insurance industry in Nigeria:
The British colonial government introduced insurance business into Nigeria in 1910. Traditionally, though some forms of social insurance existed in part of the Nigerian society long before their arrival. This was in form of mutual and social schemes, which evolved through, the extended family system, age grades and clan unions typical of African cultures. This simple form of social insurance was practiced by means of cash donations, organized collective labour of assisting one another and the entire community, who suffer mishap. The people in the community, especially those of the same age bracket collect funds periodically just in the same manner as the industrial life insurance premiums are collected. Right from the on set, Nigerian cultures and indeed African people have seen the reason to contribute funds to assist members who may suffer mishap such as illness, important ceremonies as child naming, marriage, funeral and all kinds of social obligations. The enactment of workmen’s compensation ordinance of 1942 and the Road Traffic Act of 1945 both contributed to the meaningful take- off of insurance industry at that time. Against the backdrop of the fact that Nigerian economy inthe 60’s was dependent on agriculture, Marine Insurance was popular for external trader to produce...
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