The enforcement of Third-Party Motor Insurance in Nigeria, which began on February 1, 2025, has raised concerns among motorists, prompting calls for better public education. Segun Bankole, Chairman of the Corporate Affairs Committee of the Nigerian Insurers Association (CAMCONIA) and Head of Corporate Communications and Investor Relations at Sovereign Trust Insurance Plc, has emphasized the need for awareness to ensure a smooth enforcement process.
He noted that some motorists, especially comprehensive motor insurance policyholders, have faced challenges with law enforcement officers who insist that they must obtain a Third-Party Motor Insurance policy, as directed by the Inspector General of Police (IGP). This has led to confusion and complaints from vehicle owners, who believe their comprehensive insurance policies should be recognized.
For clarification, Third-Party Motor Insurance provides legal indemnity against injury, death, or property damage caused to a third party. On the other hand, Comprehensive Motor Insurance covers damage to the insured vehicle in addition to third-party liabilities. Both policies are valid under Section 68 of the Insurance Act 2003 and the Third-Party Motor Insurance Act of 1950.
Bankole stressed that while the collaboration between the Nigeria Police Force (NPF) and the National Insurance Commission (NAICOM) is a positive step, there is a need for more enlightenment to prevent misunderstandings. He urged motorists to comply with the policy, highlighting its role in protecting lives and properties, particularly in road accident cases involving third parties.
With proper education, he believes insurance enforcement will gain public trust, ensuring a safer and more compliant road transport system in Nigeria.
