Mataracy
VIP Contributor
Plagiarism warning
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.
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.