Insurance Questions and Answers

Utmost good faith is a common law principle (sometimes called Uberrimae Fidei). The principle means that every person who enters into a contract of insurance has a legal obligation to act with utmost good faith (honesty) towards the company offering the insurance.

Life insurance provides an infusion of cash for dealing with the adverse financial consequences of the insured's death. Life insurance enjoys favorable tax treatment unlike any other financial instrument. Death benefits are generally income-tax-free to the beneficiary.

The purpose of life insurance is to provide financial protection to surviving dependents after the death of an insured.

Ex gratia (/ˌɛks ˈɡreɪʃiə/; also spelled ex-gratia) is Latin for "by favour", and is most often used in a legal context. When something has been done ex gratia, it has been done voluntarily, out of kindness or grace.

public liability insurance: Insurance that covers the insured in the case of legal action brought by members of the public. Public Liability insurance is designed to protect the insured against negligence for accidental loss of or damage to third party property, bodily injury etc

The minimum amount of auto insurance in Nigeria that motorists must carry is third party motor insurance. Know the Terminology In the auto insurance world, a third party is defined as everyone involved in an accident except the policy holder.