The Nigeria Police Force on Saturday February 1, 2025 began a nationwide enforcement of the Third Party Motor Insurance as announced by the Inspector General of police, with the backing of the National Insurance Commission (NAICOM).
Motor third-party insurance is a mandatory insurance policy made compulsory under the law for vehicle owners and drivers plying on Nigerian roads.
Section 68 of the Insurance Act and Section 312 of the 1945 Motor Vehicle (Third Party Insurance) Act mandated all vehicle owners to possess third-party insurance before operating their vehicles on public roads.
Premium Rate for Motor Insurance
The Federal Government, through the National Insurance Commission (NAICOM) in December 2022 reviewed the premium rate for motor insurance in Nigeria that became effective 1st January 2023.
In the reviewed rate, private vehicles now pays N15, 000 premium for N3 million maximum benefit, while owner good vehicles pay N20, 000 premium for N5 million, and staff busses pay N20, 000 premium for N3 million claims limit.
For commercial trucks and general cartage, they are to pay N100, 000 premium for N5 million claims limit; Tricycles N5, 000 for N2 million claims limit, and Motor Cycles N3, 000 for N1 million claims limit.
While for comprehensive motor insurance policy, premium rate shall not be less than 5 percent of the sum insured after all rebates and discount.
To verify your motor insurance policy
Policyholders who had taken out the insurance policy can check the genuineness of their motor insurance policy by visiting www.askniid.org or by sending short messaging service (SMS) to the USSD code *565*11# on any mobile phone with or without internet access.
Using this platform is very easy and you can authenticate your policy in a few short steps: From any web enabled device. Your browser should take you to a page on NIID portal where you can verify your insurance policy.
Ekerete Ola Gam-Ikon the deputy commissioner, Finance & Administration at NAICOM said motor policy can be verified with *7292#, or visit www.askiid, or to purchase genuine Third-Party Motor insurance, respectively.
Genuine Motor Insurance Policy
Genuine Motor Third Party Insurance is gotten from any of the NAICOM registered insurance companies, offering general insurance business. It can also be gotten from registered insurance brokers or agents of underwriting firms. The risk of getting a fake insurance certificate at licensing offices should be avoided, to prevent unwarranted embarrassment from security agencies.
Collaboration:
In a collaborative move to strengthen insurance compliance in the country, the National Insurance Commission (NAICOM) and the Nigeria Police Force (NPF) have inaugurated a joint committee on enforcement of compulsory insurance laws.
The task of the Joint Committee will be to develop and implement strategies for enforcing compulsory insurances in Nigeria; Ensure compliance with compulsory insurance policies as mandated by the Insurance Act and other related laws; Foster synergy and collaboration between NAICOM and NPF; Provide training and capacity-building programs for personnel of both organizations on compulsory insurances
Scope of Work of the committee will be to evaluate existing challenges in enforcing compulsory insurances and propose solutions; Develop protocols for joint enforcement operations of compulsory insurances; Recommend policy reforms to strengthen insurance compliance; Undertake public sensitization programs on compulsory insurances, and Develop training programs for personnel of both organizations on compulsory insurances
The joint committee’s inauguration marks a significant step towards ensuring that all vehicle owners comply with compulsory insurance laws. This collaboration aims to promote a safer and more secure environment for all road users, NAICOM said Thursday.
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