The National Insurance Commission (NAICOM) has endorsed the Nigeria Police Force’s decision to enforce third-party motor insurance policies nationwide starting February 1, 2025. The move aims to ensure compliance with Section 68 of the Insurance Act 2003, which mandates third-party motor insurance for all vehicles on Nigerian roads.
NAICOM stated on Wednesday that this enforcement will enhance road safety and provide financial compensation to victims of road accidents. Third-party motor insurance, which is legally required, offers coverage for damages, injuries, or deaths caused to third parties during accidents.
The policy costs N15,000 annually for private car owners, with varying premiums for commercial vehicles based on their type. It provides a compensation limit of up to N3 million for damaged third-party property, limited medical care for injured third parties, and financial benefits to the families of deceased victims. Additionally, the policy includes coverage for vehicles driven in West African countries under the ECOWAS Brown Card Scheme.
NAICOM emphasized that third-party motor insurance can only be purchased through licensed insurance entities authorized by the commission. To address potential disputes, NAICOM also highlighted the presence of its complaints bureau, which resolves issues related to claims or services provided by insurance companies.
This enforcement aligns with the Nigeria Police Force’s commitment to ensuring compliance and protecting the rights of road users. NAICOM encourages vehicle owners to adhere to this policy to safeguard lives and property on Nigerian roads.
