Joy Agwunobi
The National Insurance Commission (NAICOM) has issued a statement to clarify the requirements and benefits of the Third-Party Motor Insurance Policy ahead of its nationwide enforcement by the Nigeria Police Force, which is set to commence on February 1, 2025.
The commission noted that the enforcement aligns with Section 68 of the Insurance Act 2003, which mandates this coverage for all vehicles operating on Nigerian roads.
According to NAICOM, the Third-Party Motor Insurance Policy is the minimum level of coverage compulsorily required by law, while Comprehensive Motor Insurance remains optional but recommended. The policy aims to safeguard road users by ensuring financial recovery for damages, injuries, or loss of life caused by accidents involving insured vehicles.
NAICOM explained that the policy is sold for an annual premium of ₦15,000 to private car owners, while premiums for commercial vehicles vary depending on the type of vehicle. It provides policyholders with a limit of up to ₦3 million for the repair or replacement of a third party’s damaged property.
In addition, the policy covers limited medical expenses for injured third parties and offers financial compensation to the families of deceased third parties in the event of death.
The statement reads in parts: “The Third Party Motor Insurance Policy can be procured from or through only licensed insurance entities authorised by the National Insurance Commission to transact motor insurance business in Nigeria.”
“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 gives the policyholders the limit of N3m 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 it was driven to any West African country based on the protocol of the ECOWAS Brown Card Scheme.”
The commission further noted that a complaints bureau is in place to ensure the resolution of all complaints that may emanate from members of the public who may be dissatisfied with an insurance company’s service or response to claims.
