NAICOM backs Police Force on Enforcement of Third Party Insurance Feb 1, 2025
By Ewache Ajefu
The National Insurance Commission (NAICOM) has thrown its weight behind the Nigeria Police Force as it begins enforcement of third party insurance policy for all vehicles on Nigerian roads by February 01, 2025.
In a statement by the Commission on Wednesday, it said th development aims to ensure compliance with Section 68 of the Insurance Act 2003.
The Commission noted 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.
The insurance regulator further said 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 said 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.
The Commission also explained that the Third Party Motor Insurance Policy
can be procured from or through only licensed insurance entities authorized by the National Insurance Commission to transact Motor Insurance business in Nigeria.
According to the Commission, the Third Party Motor Insurance Policy is
sold for a premium of N15,000 per year for private car owners, while the premiums for commercial vehicles vary depending on the type of vehicles.
It further noted that the Third Party Motor Insurance Policy gives the policyholders the limit of N3m to repair or replace the property of the innocent third party damaged during an accident, apart from giving the policyholders access to limited medical care for any injured third party as a result of the accident.
The Commission added that
it also provides financial compensation to family
of the deceased innocent third party in the event of
death, stressing that 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 however 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.
It said a Complaints Bureau is already in place at the
National Insurance 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.
