The Nigeria Police Force’s decision to enforce nationwide compliance with the Third-Party Motor Insurance Policy from February 1, 2025, has been hailed as a transformative move for the insurance industry and road safety in Nigeria.
This enforcement, in accordance with Section 68 of the Insurance Act 2003, aims to address the longstanding challenges of non-compliance, fake insurance policies, and uninsured risks on Nigerian roads. The Nigerian Insurers Association (NIA) has commended this initiative, describing it as a strategic step towards protecting motorists, third parties, and the broader economy.
According to the Chairman of the NIA, Mr. Kunle Ahmed, the implementation of this policy underscores the critical role of insurance in risk management and financial protection. He explained that genuine third-party motor insurance policies provide essential compensation for property damage and medical care for accident victims, fostering greater confidence in the insurance sector.
“The enforcement of third-party motor insurance is not only a compliance issue; it is a vital strategy for ensuring financial protection for victims of road accidents and car owners. The third-party insurance policy also provides compensation for property damage and medical care for injured third parties, which further contributes to building confidence in the insurance sector,” Ahmed said.
The initiative is expected to significantly increase the number of insured vehicles, reduce fraudulent insurance practices, and stimulate growth within the insurance sector.
“The NIA recognises the immense potential of this enforcement to drive positive change in the insurance industry and the broader economy. With millions of vehicles on Nigerian roads, this move is expected to increase the number of genuinely insured vehicles, reduce the prevalence of fake insurance policies, and create a more robust safety net for motorists and road users alike,” Mr. Ahmed said, noting that the enforcement aligns with the NIA’s mission to expand awareness of the benefits of insurance and enhance collaboration with stakeholders to strengthen the industry’s ecosystem.
He further assured motorists that licensed insurers are ready to provide seamless access to third-party insurance policies. “As the enforcement takes effect, I want to assure the insuring public and other stakeholders that our members are fully prepared to provide seamless access to third-party motor insurance policies through authorised channels, ensuring that every Nigerian motorist can protect their risk and comply with the law. We will work closely with our members to ensure efficient service delivery, innovative products, and improved customer experiences,” he stated.
In addition to supporting the police-led enforcement, the NIA has intensified efforts to educate the public on the importance of obtaining valid insurance policies. Collaborating with the National Insurance Commission, the association has rolled out sensitisation campaigns to highlight the benefits of genuine third-party motor insurance.
As the February 1 deadline approaches, the NIA has called on vehicle owners nationwide to comply with the law by obtaining their policies from authorised insurers.
