Abstract

The aim of motor vehicle insurance is to compensate victims of motor vehicle accidents caused by motorists on the highway. Nevertheless, there are certain instances where the insurer is unable to compensate victims. This may be qualified to several factors, some of which are the invalidity of the insurance contract, suspension of the contract, insolvency, “hit and run” drivers and where the driver is not insured. In such situations, there is often the problem of who should compensate the victims.

The study sets out as objective; To examine the effectiveness of the mechanisms put in place to settle claims in case the risks insured against under third party liability for motor vehicle insurance arise. In order to attain the objectives, set out in this work, we adopted the doctrinal research method which involves the analysis of both primary and secondary information. It is revealed that, there are procedural peculiarities that need to be followed for proper compensation. They are procedures provided for by the law.

These procedures include the time limit for filing a claim; prove of the claim, content of the claim. However, there some hurdles that besets the effective compensation of victims of accidents.

It is therefore recommended that, the law should provide heavy sanctions for non-compliance with the provisions of compulsory motor vehicle insurance, and heavy sanctions too for drivers who flees the scene of the accident after causing an accident leaving the victim hopeless, this will help deter the drivers who ply the high way without any cover at the detriment of the victims.

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