The National Insurance Commission (NAICOM) has endorsed the Nigeria Police Force’s (NPF) initiative to enforce mandatory Third Party Motor Insurance compliance for all vehicles on Nigerian roads starting February 1, 2025. This move aligns with Section 68 of the Insurance Act 2003, which mandates motor third-party insurance as the minimum legal requirement for vehicles operating in Nigeria.
In a public statement, NAICOM emphasized the importance of educating Nigerians on the benefits of Third Party Motor Insurance. The Commission noted that many vehicle owners may not fully understand the significance of the policy, which protects third parties in the event of accidents caused by the insured vehicle.
Key Features of Third Party Motor Insurance
- Legal Compliance: The policy is a statutory requirement for all vehicles plying Nigerian roads.
- Affordable Premiums: The cost of the policy for private cars is ₦15,000 annually, with premiums for commercial vehicles varying by type.
- Coverage Benefits:
- Property Damage: Provides up to ₦3 million to repair or replace the property of an innocent third party damaged in an accident.
- Medical Coverage: Offers limited medical care for injured third parties.
- Compensation for Death: Financial compensation is provided to the family of a deceased third party.
- Regional Coverage: The policy includes protection under the ECOWAS Brown Card Scheme, extending coverage to vehicles traveling in West African countries.
NAICOM has urged vehicle owners to take advantage of the upcoming enforcement to ensure compliance. It highlighted that the policy enhances road safety, offers financial protection for innocent third parties, and supports the broader goal of improving public confidence in Nigeria’s insurance industry.
Additionally, the Commission assured the public that the Third Party Motor Insurance Policy is available only through licensed insurance providers authorized by NAICOM. It also encouraged vehicle owners to utilize its Complaints Bureau to address any grievances with insurance companies, ensuring transparency and customer satisfaction.
NAICOM expressed optimism that the enforcement would strengthen the insurance sector and promote adherence to legal requirements. It reiterated its commitment to building a robust insurance industry that prioritizes safety and public welfare.
With February 1 fast approaching, NAICOM and the NPF are working to ensure widespread awareness and compliance, positioning this initiative as a significant step toward enhancing road safety and financial accountability on Nigerian roads.
