The National Insurance Commission has expressed support for the decision of the Nigeria Police Force to commence enforcement of the third-party motor insurance policy from February 1.
In a statement on Wednesday, the insurance industry regulator said the move would ensure compliance with Section 68 of the Insurance Act 2003.
The Nigeria Police Force, in a statement last Friday signed by Force Public Relations Officer Olumuyiwa Adejobi, announced the commencement of the enforcement nationwide.
NAICOM in the fresh statement said, “The National Insurance Commission welcomes the announcement by the Nigeria Police Force that with effect from 1st February 2025, there will be a nationwide enforcement of the Third Party Motor Insurance for all vehicles on Nigerian roads. This move aims to ensure compliance with Section 68 of the Insurance Act 2003.”
The Third Party Motor Insurance is the minimum coverage compulsorily required by law for any vehicle on our 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. The Third Party Motor Insurance Policy 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 the 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 it was driven to any West African country based on the protocol of the ECOWAS Brown Card Scheme,” NAICOM added in the statement.
The regulator also noted that it has a complaints bureau in place to ensure the resolution of all complaints that may emanate from members of the public who may be dissatisfied with an insurance company’s service or response to claims.
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