Banking & Finance

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

Published by
Esther Agbor

 

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.

Esther Agbor

Esther is a graduate of History and International Relations. She writes on healthcare and the impact of economic policy on society.

Recent Posts

MTN Restores Internet Services After Two Day Network Outage

MTN Nigeria has restored its internet services following disruptions that affected parts of Lagos State.… Read More

1 hour ago

FG Launches Contactless Passport Renewal System for Nigerians in Europe

The Nigerian government has introduced a Contactless Passport Application System (CONPAS) for Nigerians residing in… Read More

2 hours ago

Vacancy: Manager, Operations, IHS Towers Douala Cameroon

Vacancy: Manager, Operations Location: Douala, Cameroon Employment Type: Full-Time, Permanent Department: Operations Company Overview IHS… Read More

3 hours ago

Vacancy: Associate Director, Corporate Commercial at IHS Towers Lagos Nigeria

IHS Towers is one of the world's largest independent owners, operators, and developers of shared… Read More

3 hours ago

Fairmoney is Hiring : Business Operations Manager – Apply Now

About the company FairMoney is a pioneering mobile banking institution specializing in extending credit to… Read More

8 hours ago

Trump Signs an Executive Order to Freeze Aid to South Africa and Resettle White South African Farmers and Their Families in the United States as Refugees

In a controversial move likely to deepen tensions between Washington and Pretoria, US President Donald… Read More

9 hours ago