Document background
The Auto Insurance Cancellation Letter is a crucial document used in the Nigerian insurance market when a policyholder wishes to terminate their automobile insurance coverage. This document is required under Nigerian law, specifically the Insurance Act 2003 and NAICOM guidelines, to formally end an insurance contract. It should be used when changing insurance providers, selling a vehicle, or otherwise discontinuing coverage. The letter must include specific information such as policy details, vehicle information, cancellation date, and reason for cancellation. Given Nigeria's mandatory third-party insurance requirements for vehicles, careful attention must be paid to maintaining continuous coverage when transitioning between policies. The document serves as legal proof of the policyholder's intention to cancel and protects both parties' interests during the cancellation process.
