Back to: Insurance
Welcome back, my dependable learner! I love your consistency. You’ve now learnt about life insurance—but insurance doesn’t stop there. What about your car, your house, your shop, or even your mobile phone? That’s where non-life insurance comes in. Let’s unpack it together in today’s class.
Non-Life Insurance
Imagine coming home one day to find your apartment flooded. Or waking up to discover your car has been stolen. These events are not just emotional—they are financially painful. But with non-life insurance, you don’t have to start from scratch. It’s like having a safety net for your belongings and your business.
Non-life insurance helps protect you from everyday risks that can affect your property, business, or legal responsibility. Let’s break it down.
Overview of Non-Life Insurance
Non-life insurance—also called general insurance—refers to all insurance policies that do not involve life cover. Instead, they cover loss or damage to things like homes, cars, businesses, health, and personal liability.
Unlike life insurance, these policies are usually short-term—one year at a time—and you can renew them.
Types of Non-Life Insurance
Motor Insurance:
Covers loss or damage to vehicles.
Third-party insurance (compulsory in Nigeria) covers damages to others.
Comprehensive insurance covers both your car and third parties.
Fire Insurance:
Protects buildings and contents from fire damage.
Burglary/Theft Insurance:
Covers loss or damage from theft or break-ins.
Health Insurance:
Pays for medical bills, surgeries, and sometimes drugs and tests.
NHIS (National Health Insurance Scheme) is a major provider in Nigeria.
Travel Insurance:
Covers risks during travel, like missing luggage, trip cancellation, or accidents.
Personal Accident Insurance:
Provides compensation if you’re injured or disabled due to an accident.
Public Liability Insurance:
Protects businesses if a customer is injured or suffers loss due to the business.
Benefits of Non-Life Insurance
Protection from sudden expenses like hospital bills or repairs.
Peace of mind when running a business or driving a car.
Legal support in case of liability claims.
Support for recovery after disasters or theft.
Encourages responsible ownership of property and businesses.
Examples
Let’s say Ayo has a comprehensive motor insurance policy. One morning on Third Mainland Bridge, his car is hit by a reckless driver. His insurer covers the repair cost—saving him from a major expense.
Or think about Mrs. Eze, who insures her foodstuff shop in Port Harcourt. One night, thieves break in and steal goods worth ₦400,000. Her burglary insurance helps her restock quickly and continue business without begging or borrowing.
Summary
Non-life insurance protects everything apart from life—your property, your health, your car, your business. It includes fire, theft, motor, and health insurance, among others. It’s practical, short-term, and necessary for daily living, especially in a country like Nigeria where uncertainties are common.
Evaluation
What is the difference between life and non-life insurance?
Name three types of non-life insurance and what each covers.
Why is non-life insurance important for business owners?
Wow—you’ve just mastered a huge part of insurance! You’re getting wiser and more equipped to make great financial decisions. Keep going strong—Afrilearn is with you every step of the way, cheering you on. The future is yours!