Police entry into insurance sparks enforcement for third-party cover

The recent entry of the Nigeria Police Force into insurance, with ownership of NPF Insurance Limited has sparked a new wave of interest that will enhance enforcement of Motor Third Party policy.

Motor Third Party policy is a compulsory insurance requirement for all vehicles plying on Nigerian roads, which is enforced by the police, vehicle inspection officers (VIO), Road Safety and other security agencies.

The hope for renewed enforcement drive came few days ago, when the National Insurance Commission(NAICOM) led by Segun Omosehin, the commissioner for insurance paid a courtesy visit to the Inspector General of Police(IGP) Kayode Adeolu Egbetokun at the Force Headquarters in Abuja.

Omosehin during the visit congratulated the IGP on his notable achievements, particularly the recent licence acquisition for the Police Insurance Company, reminding the IGP of his earlier request for assistance in enforcing all compulsory insurance policies, but this time narrowed his focus on Third-Party Motor Insurance.

The CFI went father to pledge the necessary support to ensure seamless enforcement of third-party motor insurance across the country, emphasizing the need for a mass awareness campaign and education of the Nigeria Police Officers.

In response, Egbetokun, the IGP expressed his alignment with the CFI for insurance, acknowledging the compulsory nature of third-party motor insurance in Nigeria.

He emphasized that violating this law is punishable, yet unfortunately, only 30 percent of vehicles in the country are insured.

Egbetokun further highlighted the numerous benefits of having insurance coverage, stressing the importance of protecting lives and property. He urged citizens to obtain at least a third-party insurance cover for their vehicles before driving on Nigerian roads.

To ensure compliance, the IGP announced that full enforcement of third-party motor insurance would commence on February 1, 2025.

NAICOM had in November 2024 granted an operational license to NPF Insurance Co. Ltd, as a general insurance company. The development enables NPF Insurance to commence general insurance operations in Nigeria, having successfully fulfilled all registration requirements.

Omosehin, commissioner for Insurance during the handing over of the license to NPF Insurance Co. Ltd in his office in Abuja congratulated the company for meeting all the necessary regulatory standards, and expressed confidence in NPF Insurance’s potential to contribute to the development of the industry.