BY FELICIA BOLAJOKO DAVID: As we step into the year 2026, individuals, families, business owners, and corporate organizations are increasingly exposed to risks ranging from road accidents and fire outbreaks to workplace hazards and building-related incidents. While these risks may not always be preventable, their impact can be effectively managed through insurance,particularly the compulsory classes ofinsurance provided under Nigerian law.
Compulsory insurance is not intended to be a burden. Rather, it serves as a protective framework that ensures victims of accidents, disasters, or negligence are not left financially stranded and that responsible parties are adequately covered.
UNDERSTANDING COMPULSORY INSURANCE IN NIGERIA
Certain insurance policies are made compulsory because of their direct relevance to public safety, social welfare, and economic stability.
These include:
– Motor Third Party Insurance
Motor Third Party Insurance is mandatory for àll vehicle owners in Nigeria. It provides compensation fo death, bodily injury, orproperty damage suffered by third parties as a result of motor accidents.
For motorists, this policy guarantees legal compliance and peace of mind. For accident victims, it ensures timely financial relief. With increased enforcement and digital verification in 2026,valid Motor Third Party Insurance remains essential for every road user.
– Group Life Insurance
Group Life Insurance is compulsory for employers of labour. It provides financial benefits to the dependants of an employee in the unfortunate event of death while in service.
This policy reflects responsible corporate citizenship and assures employees that their families will be supported even in difficult times.
Builders’Liability Insurance
Owners or contractors of buildings under construction above two floors are required to maintain Builders’ Liability Insurance. This cover protects against liability arising from injury,death, or property damage to third parties during construction.
As construction activities expand nationwide, this policy plays a critical role in safeguarding lives and surrounding properties.
Occupiers’ Liability (Public Buildings) Insurance
Public buildings, such as offices, schools, hospitals, hotels, churches, malls, and event centres, must be insured against risks of injury or death to members of the public within their premises. This insurance protects both visitors and property owners, ensuring compensation is available when incidents occur.
WHY COMPULSORY INSURANCE IS CRUCIAL IN 2026
In today’s dynamic environment, compulsory insurance helps to:
·Protect lives and livelihoods
·Reduce financial hardship after accidents
·Promote accountability and responsible behaviour
·Support economic resilience
·Ensure compliance with statutory requirements
Beyond compliance, insurance provides peace of mind, the assurance that help is available when the unexpected happens.
Making Insurance Accessible and Trustworthy
The insurance industry continues to adopt digital solutions, simplified processes and improved claims management to make compulsory insurance more accessible, affordable, and transparent for all Nigerians.
Members of the public are strongly advised to engage only with licensed and reputable insurers to ensure that their policies are valid and enforceable.
Your Trusted Partner for Compulsory Insurance
At Alliance and General Insurance Plc, we are committed to helping individuals, businesses, and organizations comply with compulsory insurance requirements seamlessly. Our customer-focused approach ensures that policyholders receive not just coverage,but confidence,clarity, and reliable support when it matters most.
Motorists, employers, property owners, and business operators are encouraged to contact Alliance and General Insurance Plc for guidance and coverage on all compulsory insurance policies,tailored to meet regulatory requirements and personal needs.
A Call to Action for the New Year
As we embrace 2026, I urge every Nigerian to see compulsory insurance not merely as a legal obligation, but as a responsible decision that protects people, preserves dignity, and secures the future.
Insurance is about more than policies, it is about people, protection, and peace of mind.
Together let us build a safer and more secure Nigeria, one insured step at a time.
Felicia Bolajoko David
is the Managing Director/Chief Executive Officer, Alliance and General Insurance Plc
