BY NKECHI NAECHE-ESEZOBOR— The Nigerian Insurers Association (NIA)on Monday applauded the Inspector General of Police (IGP), and the Nigeria Police Force for the recent announcement of nationwide enforcement of Third-Party Motor Insurance Policy, effective February 1, 2025.
This initiative according to the Association aligns with the provisions of Section 68 of the Insurance Act 2003. It is a significant step towards strengthening compliance, ensuring road safety, and protecting motorists and third parties on Nigerian roads.
Chairman of the NIA, Mr. Kunle Ahmed, in a statement released today said he welcomedthe development, noting that it is a timely and commendable action by the Nigeria Police Force.
He also emphasized the importance of enforcing the policy to improve risk management, industry innovation and fostering economic growth.
According to him the enforcement of third-party motor insurance is not only
compliance issue; it is a vital strategy for ensuring financial protection for victims of road accidents and the car owners. The third-party insurance policy also provides Compensation for property damage and medical care for injured third parties, which further contributes to building confidence in the insurance sector.
“The NIA recognises 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”, he remarked.
Ahmed explained that the initiative also
also aligns with his administration’s agenda to prioritise increasing awareness of the benefits of insurance, fostering innovation within the industry, and enhancing 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. We will work closely with our 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. The NIA has also set up initiatives to collaborate with the National Insurance Commission (NAICOM) in increasing public awareness and sensitisation efforts to educate Nigerians about the benefits of genuine motor insurance policies.
“The NIA calls 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.”
