The Nigerian Insurers Association (NIA)
The Nigerian Insurers Association (NIA) has commended the Inspector General of Police (IGP) and the Nigeria Police Force for their recent announcement of a nationwide enforcement of the Third-Party Motor Insurance Policy. This directive, set to take effect on February 1, 2025, is seen as a significant step toward enhancing compliance, ensuring road safety, and protecting motorists and third parties across Nigerian roads.
This initiative aligns with the provisions of Section 68 of the Insurance Act 2003, underscoring the government’s commitment to regulatory enforcement in the insurance sector. Reacting to the announcement, Kunie Ahmed, Chairman of the NIA, welcomed the development as a timely and commendable action by the Nigeria Police Force.
Ahmed highlighted the critical role of enforcing the policy in improving risk management, fostering industry innovation, and driving economic growth. “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 the car owners,” he stated.
He elaborated on the benefits of the third-party insurance policy, noting that it provides compensation for property damage and medical care for injured third parties, which further contributes to building public confidence in the insurance sector. “The NIA recognizes 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,” Ahmed remarked.
The NIA Chairman also emphasized the initiative’s alignment with his administration’s agenda to increase awareness of the benefits of insurance, foster innovation within the industry, and enhance partnerships with key stakeholders to strengthen Nigeria’s insurance ecosystem.
“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 authorized channels, ensuring that every Nigerian motorist can protect their risk and comply with the law,” Ahmed assured.
He further pledged the association’s commitment to working closely with its members to ensure efficient service delivery, innovative products, and improved customer experiences. “The NIA believes this enforcement is a game-changer for the industry, as it will encourage greater public trust in insurance, reduce uninsured risks, and stimulate economic activity,” Ahmed added.
The NIA has also launched initiatives to collaborate with the National Insurance Commission (NAICOM) in increasing public awareness and sensitization efforts to educate Nigerians about the benefits of genuine motor insurance policies.
The association called on vehicle owners nationwide to take full advantage of this opportunity by obtaining their third-party motor insurance policies through licensed and authorized insurers. “We can build a safer, more accountable, and better-protected road network for all Nigerians,” Ahmed concluded.
The NIA’s support for the Nigeria Police Force’s enforcement of the Third-Party Motor Insurance Policy marks a pivotal moment in the push for greater compliance and safety on Nigerian roads, setting the stage for a more robust and trustworthy insurance industry.
