The Nigerian Insurers Association (NIA) has announced the nationwide enforcement of the Third-party Motor Insurance Policy, set to take effect on February 1, 2025. This initiative aims to tackle the prevalence of fake insurance certificates, boost subscription to genuine motor insurance, and increase the overall adoption of insurance in Nigeria.
In a statement made available, the NIA emphasized the transformative potential of the enforcement, highlighting its anticipated benefits for the insurance industry and the broader economy. With millions of vehicles on Nigerian roads, the policy enforcement is expected to significantly increase the number of insured vehicles, reduce the circulation of counterfeit insurance policies, and provide a stronger safety net for motorists and road users.
Key Benefits and Objectives
Kunle Ahmed, Chairman of the NIA, stated that the enforcement aligns with his administration’s agenda to raise awareness about the benefits of insurance, foster innovation, and strengthen partnerships with key stakeholders to enhance Nigeria’s insurance ecosystem.
“This initiative marks a turning point for the industry,” Ahmed remarked. “It will foster greater public trust in insurance, reduce uninsured risks, and stimulate economic growth.” He further assured stakeholders and the public that the association’s members are fully prepared to provide seamless access to third-party motor insurance policies through authorized channels, ensuring compliance with the law and protection for motorists.
Industry Readiness and Public Sensitization
The NIA revealed that it has taken proactive measures to ensure smooth implementation of the policy. This includes collaboration with the National Insurance Commission (NAICOM) to increase public awareness and sensitization campaigns about the importance and benefits of genuine motor insurance policies.
“We are working closely with our members to ensure efficient service delivery, innovative products, and improved customer experiences,” Ahmed added. He called on vehicle owners nationwide to take advantage of the initiative by obtaining their third-party motor insurance policies through licensed and authorized insurers.
Compliance and Legal Framework
The enforcement aligns with Section 68 of the Insurance Act 2003, which mandates third-party motor insurance for all vehicles on Nigerian roads. The NIA believes that strict compliance with this regulation will significantly improve road safety and provide adequate protection for motorists and third parties.
The association also stressed that the initiative represents a significant step toward creating a safer and more accountable road network in Nigeria. “By embracing genuine insurance policies, we can collectively build a better-protected road network for all Nigerians,” Ahmed stated.
A Call to Action
As February 1 approaches, the NIA is urging vehicle owners to regularize their motor insurance policies promptly. By doing so, they will not only comply with the law but also contribute to building a more transparent and reliable insurance system in the country.
This landmark enforcement is expected to redefine the insurance landscape in Nigeria, fostering greater trust in the industry while promoting road safety and economic stability.
