NAICOM urges public compliance on third-party motor insurance, Police to Commence Enforcement 1 February 2025

The National Insurance Commission (NAICOM) has called on motorists to comply with the mandatory third-party motor insurance policy as the Nigeria Police Force begins its nationwide enforcement on February 1, 2025.

In a statement released on Wednesday, NAICOM emphasized that the initiative aligns with Section 68 of the Insurance Act 2003, which mandates third-party motor insurance as the minimum coverage for all vehicles on Nigerian roads. The move, according to NAICOM, is crucial for ensuring public safety and financial protection in the event of road accidents.

The Nigeria Police Force had earlier announced the enforcement date in a statement signed by its Public Relations Officer, Olumuyiwa Adejobi, stressing the importance of compliance to enhance road safety and insurance coverage.

Explaining the benefits of the policy, NAICOM stated, “The National Insurance Commission 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. This move aims to ensure compliance with Section 68 of the Insurance Act 2003.

“The essence of every vehicle on the road having third-party motor insurance is to facilitate the 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. The Third Party Motor Insurance Policy can be procured from or through only licensed insurance entities authorised by the National Insurance Commission to transact motor insurance business in Nigeria. 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 vehicle.”

Additionally, the policy now includes coverage for vehicles driven across West African countries under the ECOWAS Brown Card Scheme. NAICOM clarified that only licensed insurance entities are authorized to issue this policy, ensuring legitimacy and accountability in the system.

The regulator reassured the public of its commitment to protecting policyholders’ rights through its complaints bureau, which addresses grievances against insurance providers.