NEWS

Third-Party Motor Insurance: What To Know About Latest Enforcement

The Nigeria Police Force began a nationwide crackdown on uninsured vehicles on February 1, enforcing third-party motor insurance regulations.

This initiative seeks to reduce the high number of uninsured vehicles on Nigerian roads and ensure accident victims receive proper compensation.

Although the policy has been in place since the Insurance Act of 2003, many vehicle owners remain unclear about its details and implications.

The enforcement is happening simultaneously nationwide, with motorists warned to comply or face penalties.

In a press statement titled “Understanding the Latest Announcement of the Enforcement of Third-Party Insurance by the Nigeria Police Force,” the National Insurance Commission (NIC) clarified the enforcement measures.

What third-party insurance means

Third-party insurance is the minimum coverage compulsorily required by law for any vehicle on Nigerian roads, while Comprehensive Motor Insurance is optional and recommended.

“The National Insurance Commission welcomes the announcement by the Nigeria Police Force that, effective 1st February 2025, there will be a nationwide enforcement of Third-Party Motor Insurance for all vehicles on Nigerian roads.

“This move aims to ensure compliance with Section 68 of the Insurance Act 2003.

“The Commission recognizes that many Nigerians, especially vehicle owners, may not fully understand the importance of the law or the benefits of the Third-Party Motor Insurance Policy.

“So, what does this mean for vehicle owners in Nigeria? To answer this question, the Commission states as follows:

“Third-Party Motor Insurance is the minimum coverage compulsorily required by law for any vehicle on our roads, while Comprehensive Motor Insurance is optional but recommended.

“The purpose of every vehicle on the road having Third-Party Motor Insurance is to ensure the safety of others and provide financial compensation for damages, injuries, or loss of life in the event of accidents covered by the policy.

“The Third-Party Motor Insurance Policy can be procured from or through only licensed insurance entities authorized by the National Insurance Commission to transact motor insurance business in Nigeria.

Coverage

“The Third-Party Motor Insurance Policy is sold for a premium of N15,000 per year to private car owners, while the premiums for commercial vehicles vary depending on the type of vehicle.

“The Third-Party Motor Insurance Policy offers policyholders coverage up to N3 million to repair or replace the property of an innocent third party damaged during an accident.

“It also provides access to limited medical care for any injured third party as a result of the accident. In addition, it provides financial compensation to the family of the deceased innocent third party in the event of death.

“Furthermore, the Third-Party Motor Insurance Policy now includes third-party motor insurance coverage for the vehicle if driven to any West African country, as per the ECOWAS Brown Card Scheme.

“The Commission encourages vehicle owners in Nigeria to take full advantage of the enforcement announced by the Nigerian Police Force to ensure the safety and protection of lives, properties, and financial compensation for innocent third parties on our roads.

“A Complaints Bureau is also in place at the National Insurance Commission for resolving any complaints from the public who may be dissatisfied with an insurance company’s service or response to claims.”

……….

Note : To submit Press Releases, Statements, and Advert Inquiries for publication on Waffi blog (website) or Television 📺, please use the following contact details: You can send an email to info@waffitv.com or reach us via Whatsapp at 07068286500

Related posts

Reps Order CBN To Suspend Cybersecurity Levy

Waffi Tv

2023 Polls: Supreme Court To Determine Fate Of Delta, Rivers, 7 Other Govs Today

Waffi Tv

FAAC Shares N1.1trn Revenue To FG, States, LGs

Waffi Tv

Leave a Comment