The National Insurance Commission (NAICOM) has backed the Nigeria Police Force on their February 1st 2025 planned 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, which makes motor third party insurance minimum requirement for all vehicles plying on Nigerian roads.
NAICOM in an advertorial said 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, hence the need for this enlightenment.
The Commission explains that 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.
It noted that 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.
According to NAICOM, the Third Party Motor Insurance Policy can be procured from or through only licensed insurance entities authorized by the NAICOM to transact motor insurance business in Nigeria.
Read also: Police entry into insurance sparks enforcement for third-party cover
“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, the commission said.
“The third party motor insurance policy gives the policyholders the limit of N3 million 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.”
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.
NAICOM also said a Complaints Bureau is also in place at the 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.
“We hope this brings a better understanding of the announcement of the enforcement of the Third Party Motor Insurance law as we look forward to building a healthier insurance industry in Nigeria, the Commission said.
Join BusinessDay whatsapp Channel, to stay up to date
Open In Whatsapp
