A third-party insurance claim occurs in a situation whereby you file a claim against another person’s insurance policy. For example, if you were injured at a restaurant, you may file a claim against the restaurant’s insurance policy.In Nigeria, third-parties can claim against the Insurer by instituting an action against the Insured and obtaining judgment. Under Section 69 of the Insurance Act, the Insurer is to satisfy a judgment against the Insured on third-party claims. Thus, the Insurer is mandated under the law to pay the judgement sum.
CONCLUSION The process of making a valid insurance claim under Nigerian law, although straightforward, has often been shrouded in secrecy. However, this does not diminish the need to know how to go about making one. Ultimately, the burden rests on the Insured to prove that his claim is legitimate. This necessitates the need for anyone with an insurance policy to know how to go about making a claim. [1] N.B. The terms insurer and policy holder are sometimes used interchangeably but do not mean the same thing.[2] Guideline 3.3.1 of the Market Conduct and Business Practice Guidelines for Insurance Institutions[3] Industrial and General Insurance PLC, “Claims Procedure (Non-Life)” Industrial and General Insurance PLC. Accessed 20/3/2022[4] In Edokpolor & Co Ltd v Bendel Insurance Company Limited (1997) 1 SCNJ 172, it was held that false disclosure of the place of departure of the ship was a breach of warranty and therefore, the insurer was discharged from the liability. Read More Articles Here.