The National Insurance Commission (NAICOM) has expressed its support for the Nigeria Police Force’s announcement that effective February 1, 2025, the Third-Party Motor Insurance Policy for all vehicles on Nigerian roads will be enforced nationwide. This move ensures strict compliance with Section 68 of the Insurance Act 2003.
NAICOM acknowledges that many Nigerians, particularly vehicle owners, may lack awareness of the law’s significance and the benefits of the Third-Party Motor Insurance Policy.
The Commission highlighted what it means for vehicle owners in Nigeria as follows:
- Third-party Motor Insurance is the minimum coverage compulsorily required by law for any vehicle on the roads, while Comprehensive Motor Insurance is optional and recommended.
- The essence of every vehicle on the road having Third-Party Motor Insurance is to facilitate the safety of others and ensure the financial recovery/compensation for damages and/or injuries or loss of lives in the event of accidents covered by the policy.
- Third-party Motor Insurance Policies can be procured from or through only licensed insurance entities authorised by the National Insurance Commission to transact Motor Insurance business in Nigeria.
- The Third-Party Motor Insurance Policy is sold for a premium of N15,000 per year to private car owners, while the premiums for commercial vehicles vary depending on the type of vehicle.
- The Third Party Motor Insurance Policy gives the policyholders a limit of N3m to repair or replace the property of the innocent third party damaged during an accident.
Also, it gives the policyholders access to limited medical care for any injured third party as a result of the accident. In addition, it provides financial compensation to the family of the deceased innocent third party in the event of death.
Furthermore, the Third Party Motor Insurance Policy now includes third-party motor insurance cover for the vehicle if the vehicle was driven to any West African country based on the protocol of the ECOWAS Brown Card Scheme.
- The Commission encourages vehicle owners in Nigeria to take full advantage of the enforcement announced by the Nigerian Police Force to ensure the safety and protection of lives, properties and financial compensation for innocent third parties on our roads.
- A Complaints Bureau is also in place at the National Insurance Commission for resolving all complaints that may emanate from members of the public who may be dissatisfied by an insurance company’s service or response to claims.
This move is expected to enhance road safety, protect the rights of accident victims, and promote the overall growth of the insurance sector in Nigeria.
