Have you heard the latest update? Yes, we are talking about the third-party motor insurance update.
If you are a car owner, then we hope this message finds you well. Don’t forget, to be forewarned, is to be forearmed.
You see, in the coming days, you are going to have many encounters with men of the Nigeria Police Force, and trust us, this will not be the regular “show me your particulars” encounter.
This time, they will be asking for something different; third-party motor insurance, so if you don’t have yours, then you have some explaining to do.
And for those who do not even have an idea of this latest development, we can not but imagine the look on your face when you have that encounter.
Third-Party Motor Insurance: The Enforcement
On February 1, 2025, the Nigeria Police Force launched a nationwide enforcement of third-party motor insurance.
This new initiative aims to curb the high number of uninsured vehicles on Nigerian roads and provide victims of accidents with proper compensation.
The truth is that this law has been in place for long, just not effective.
While the policy has been established under the Insurance Act of 2003, many Nigerians, especially vehicle owners, have little or no idea about the details and implications of this enforcement.
Well, if you are on this table, you have nothing to worry about.
This article clears all doubts, and guess what? The information you will find here comes directly from the National Insurance Commission.
The enforcement exercise kicked off simultaneously across the country.
Motorists without valid third-party insurance have been advised to comply or face the consequences.
All You Need To Know About Third-Party Motor Insurance
The National Insurance Commission, published a statement titled “Understanding the Latest Announcement of the Enforcement of Third-Party Insurance by the Nigeria Police Force.”
In that statement, the commission explained everything about the insurance.
According to the statement, third-party insurance is the minimum coverage compulsorily required by law for any vehicle on Nigerian roads, while Comprehensive Motor Insurance is optional and recommended.
The statement reads: “The National Insurance Commission welcomes the announcement by the Nigeria Police Force that, effective February 1, 2025, there will be a nationwide enforcement of 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 Commission recognizes that many Nigerians, especially vehicle owners, may not fully understand the importance of the law or the benefits of the Third-Party Motor Insurance Policy.
“So, what does this mean for vehicle owners in Nigeria?
To answer this question, the Commission states as follows:
“Third-Party Motor Insurance is the minimum coverage compulsorily required by law for any vehicle on our roads, while Comprehensive Motor Insurance is optional but recommended.
“The purpose of every vehicle on the road having Third-Party Motor Insurance is to ensure the safety of others and provide financial compensation for damages, injuries, or loss of life in the event of accidents covered by the policy.
What Third-Party Motor Insurance Covers
“The Insurance Policy can be procured from or through only licensed insurance entities authorized by the National Insurance Commission to transact Motor Insurance business in Nigeria.
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“The Third-Party Motor Insurance Policy is sold for a premium of 15,000 naira 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 offers policyholders coverage up to 3 million naira to repair or replace the property of an innocent third party damaged during an accident.
It also provides 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 coverage for the vehicle if driven to any West African country, as per 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 any complaints from the public who may be dissatisfied with an insurance company’s service or response to claims.”
