General Insurance (Property, Liability, Motor, Marine, Aviation)
This domain tests the main non-life classes and the class-specific rules that change the size of a settlement - averages, excesses, perils covered and statutory liability regimes.
Class rules
- Fire and property: sums insured on reinstatement basis, average clause, excess, salvage, and special perils extensions (storm, flood, riot, explosion).
- Liability: public, product and employers' liability. The Employees' Compensation Act 2010 created ECSN and replaced the old Workmen's Compensation Act; employers' liability cover sits alongside it. Liability policies respond to legal liability, so negligence and causation must be shown.
- Motor: third-party bodily injury and death cover is compulsory under the Motor Vehicles (Third Party) Insurance Act; own damage is optional. The ECOWAS Brown Card extends third-party cover across member states.
- Marine: governed by the Marine Insurance Act 1961. Cargo uses Institute Cargo Clauses A (all risks), B, and C (named perils, narrowest). Particular average is a partial loss borne by the owner of the damaged goods; general average is a deliberate sacrifice shared by all parties to the adventure. Sue and labour costs are recoverable in addition to the sum insured.
- Aviation: hull and liability; passenger liability limits follow the Montreal Convention, and hulls are usually insured on an agreed-value basis.
Worked example
Property valued at ₦20m is insured for ₦15m with a ₦200,000 excess. Fire causes ₦6m damage. Average applies: 15/20 × ₦6m = ₦4.5m; less excess = ₦4.3m payable. Paying ₦6m is the classic error.
Traps
Applying average to an agreed-value policy. Confusing general average with particular average. Assuming ICC(C) is wider than ICC(A). Treating compulsory motor cover as covering the insured's own vehicle.