Understanding Third Party Motor Insurance enforcement by police effective Feb1- NAICOM
National Insurance Commission
Nike Popoola
The National Insurance Commission (NAICOM) says it 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.
In a statement obtained by Dailyeconomy, the Commission states that 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 and 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:
1. 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.
2. The essence of every vehicle on the road having the Third Party Motor Insurance is to facilitate 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.
3. The Third Party Motor 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.
4. 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 vehicles.
5. 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 the vehicle was driven to any West African country based on the protocol of the ECOWAS Brown Card Scheme.
6. 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.
7. 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.
The Commission says it hopes this brings a better understanding of the announcement of the enforcement of the Third Party Motor Insurance law as it looks forward to building a healthier insurance industry in Nigeria.
