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By Henry Uche
Following the recent announcement by the Nigeria Police Force on the enforcement of third party motor insurance which would take effect from February 1, 2025 for all vehicles on Nigerian roads, the National Insurance Commission (NAICOM) has commenced a sensitisation programme to keep the public abreast of the importance of the policy.
In a statement signed by the Management of NAICOM, the Commission said it recognises that many Nigerians, especially vehicle owners, may not fully understand the importance of the law and 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: The Third Party Motor Insurance is the minimum coverage compulsorily required by law for any vehicle on our roads, while Comprehensive Motor Insurance is optional and recommended.
It stressed that the essence of every vehicle on the road having the Third Party Motor Insurance is to facilitate safety of others and ensure the financial recovery/compensation for damages and/or injuries or loss of lives in the event of accidents covered by the policy.
NAICOM affirmed that 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. While the Third Party Motor Insurance Policy is sold for a premium of N15,000 per year to private car owners, the premiums for commercial vehicles vary depending on the type of vehicles.
Moreover, the Third Party Motor Insurance Policy gives the policyholders the limit of N3 million to repair or replace the property of the innocent third party damaged during an accident. Also, it gives the policyholders 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 cover for the vehicle if the vehicle was driven to any West African country based on the protocol of 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 all complaints that may emanate from members of the public who may be dissatisfied by an insurance company’s service or response to claims.
“We hope this brings a better understanding of the announcement of the enforcement of the Third Party Motor Insurance law as we look forward to building a healthier insurance industry in Nigeria” the statement added.
