Come February 1, 2025, Nigeria will witness the full enforcement of third-party motor insurance, a decision announced by the Inspector General of Police (IGP), Dr. Kayode Egbetokun. This development follows a strategic meeting with the Commissioner for Insurance and CEO of the National Insurance Commission (NAICOM), Olusegun Omosehin, held at the Force Headquarters on January 10, 2025. As this enforcement date approaches, it is crucial for all Nigerians to understand the implications, benefits, and requirements of third-party motor insurance.
What is Third-Party Motor Insurance?
Third-party motor insurance is a mandatory policy that covers damages caused by the insured vehicle to third parties. It is the most basic form of motor insurance required by law in Nigeria. This policy does not cover damages to the insured’s vehicle but provides compensation for:
- Bodily injuries or death of third parties.
- Damage to third-party property.
Legal Requirement
Under the Nigerian Insurance Act, it is illegal to operate a motor vehicle without a valid third-party insurance policy. This enforcement aligns with the country’s commitment to ensuring that all vehicle owners adhere to the law, thereby providing financial protection to third parties in the event of an accident.
Benefits of Third-Party Motor Insurance
- Financial Protection: It covers the cost of damages to third parties, thus protecting the vehicle owner from financial liabilities.
- Legal Compliance: Holding a third-party insurance policy ensures that vehicle owners are compliant with Nigerian laws, avoiding penalties or fines.
- Peace of Mind: Knowing that potential liabilities to third parties are covered can reduce the stress and uncertainty associated with road usage.
Enforcement Measures
With the full enforcement commencing on February 1, 2025, the Nigerian Police Force will actively check for compliance. Vehicle owners without valid third-party insurance will face legal consequences, including fines, vehicle impoundment, or other penalties as prescribed by law.
How to Obtain Third-Party Motor Insurance
- Licensed Insurance Providers: Purchase the policy from registered insurance companies licensed by NAICOM.
- Bancassurance Channels: Many banks offer third-party insurance policies through their bancassurance partnerships.
- Online Platforms: Several insurance companies provide the convenience of purchasing third-party motor insurance online.
Cost of Third-Party Motor Insurance
The premium for third-party motor insurance is relatively affordable and is usually a fixed amount determined by NAICOM. The affordability makes it accessible to all vehicle owners, ensuring that compliance is within reach for many Nigerians.
What Nigerians Should Do
- Verify Insurance Validity: Ensure that your current third-party insurance is valid and will not expire before February 1, 2025.
- Renew Expired Policies: If your insurance policy has expired or is about to expire, renew it promptly to avoid penalties.
- Educate Others: Spread awareness about the importance and requirement of third-party motor insurance to friends and family.
Conclusion
The enforcement of third-party motor insurance is a significant step towards ensuring road safety and financial protection for all road users in Nigeria. As February 1, 2025, approaches, vehicle owners must comply with this legal requirement to avoid penalties and contribute to a more accountable and safer driving environment. By understanding and adhering to these regulations, Nigerians can drive with peace of mind, knowing they are protected against potential liabilities.
