Insurers applaud third-party policy enforcement
Joy Agwunobi
The Nigerian Insurers Association (NIA) has expressed its approval of the recent announcement by the Inspector General of Police (IGP) and the Nigeria Police Force to commence the enforcement of the Third-Party Motor Insurance Policy across the country, effective February 1, 2025.
According to the association, this initiative aligns with Section 68 of the Insurance Act 2003 and represents a major step forward in ensuring compliance, enhancing road safety, and safeguarding motorists and third parties on Nigeria’s roads.
In a statement, Kunle Ahmed, the NIA Chairman, described the development as timely and commendable. He highlighted the importance of this enforcement, emphasizing its potential to enhance risk management, drive innovation in the insurance industry, and contribute to economic growth.
Ahmed stated, “The enforcement of third-party motor insurance goes beyond compliance; it is a critical strategy for providing financial protection to road accident victims and vehicle owners. It also offers compensation for damaged property and covers medical expenses for injured third parties, which will help to boost confidence in the insurance sector.”
According to the association, the enforcement will bring transformative changes to the insurance industry and the wider economy. With millions of vehicles on Nigerian roads. This move to significantly increase the number of vehicles covered by genuine insurance policies, reduce the circulation of fake insurance, and create a more reliable safety net for road users.
Ahmed further noted that this initiative aligns with his administration’s objectives of raising awareness about the benefits of insurance, encouraging innovation within the sector, and strengthening collaborations with stakeholders to enhance the insurance landscape in Nigeria.
“As this enforcement comes into effect, I want to reassure the public and other stakeholders that our members are fully prepared to provide easy access to third-party motor insurance policies through authorised channels,” he said. “We are committed to ensuring that every Nigerian motorist can secure their risks and comply with the law while enjoying efficient service delivery and innovative products.”
The NIA views the policy enforcement as a game-changer for the industry, fostering greater public trust, reducing uninsured risks, and stimulating economic activities. To support this initiative, the association has partnered with the National Insurance Commission (NAICOM) to increase public awareness and educate Nigerians about the advantages of genuine motor insurance policies.
The association also urged vehicle owners nationwide to take this opportunity to obtain valid third-party motor insurance policies through licensed insurers. It emphasised that compliance with this policy will contribute to safer roads, greater accountability, and better financial protection for all road users.