Joy Agwunobi
The enforcement of the Third-Party Motor Insurance policy is not just about compliance with regulations; it is a crucial step towards protecting lives and livelihoods by ensuring compensation for accident victims on Nigerian roads.
The initiative, championed by the National Insurance Commission (NAICOM), aims to ensure that all vehicles on the road have the mandatory third-party motor insurance policy as stipulated by law. This move is expected to enhance road safety and promote prompt claims payment by insurers.
To further support the enforcement exercise, NAICOM has published an official list of licensed insurance companies authorised to transact motor insurance business in Nigeria. This development is aimed at guiding vehicle owners and law enforcement agencies, including the Nigeria Police Force (NPF) and the Federal Road Safety Corps (FRSC), in identifying legitimate insurers during compliance checks.
The recent drive for compliance follows a nationwide enforcement exercise conducted by NAICOM in collaboration with the NPF and FRSC, which took effect from February 1, 2025. Under the new regime, private car owners are required to obtain third-party motor insurance for an annual premium of ₦15,000. For commercial vehicles, premiums vary based on vehicle type. The policy provides coverage up to ₦3 million for the repair or replacement of third-party property in case of an accident.
NAICOM has emphasised that beyond the protection offered by the compulsory insurance policy, defaulters face serious consequences. Penalties for non-compliance include fines of up to ₦250,000, possible imprisonment, and the risk of losing their driver’s licenses.
According to NAICOM’s latest records, the 47 licensed insurers are categorised into composite, general, and takaful insurance companies. The following insurance companies are authorised to transact motor insurance business:
Companies operating composite insurance include; AIICO insurance Plc; Alliance & General Insurance PLC; Allianz Nigeria Insurance Limited; AXA Mansard Insurance Plc; Cornerstone Insurance Plc; Goldlink Insurance Plc; Great Nigeria insurance plc; Industrial & General insurance Co plc; Lasaco Assurance plc; Leadway Assurance company limited; NICON insurance plc; and NSIA insurance limited.
General Insurance companies include: Anchor insurance company ltd; Capital Express Indemnity Insurance Ltd; Consolidated Hallmark Insurance Plc; coronation insurance Plc; Custodian & Allied insurance limited; emPLE General insurance company Nigeria limited;Fin Insurance company limited; guinea Insurance Plc; Heirs Insurance Ltd; International Energy Insurance Plc; KBL insurance limited; Linkage Assurance Plc;Mutual Benefits Assurance Plc; NEM insurance plc; Nigerian Agricultural Insurance corporation; NPF Insurance Co. Ltd; Prestige Assurance Plc; Regency Alliance Insurance plc; REX Insurance ltd; Sanlam General Insurance Ltd; Sovereign Trust Insurance Plc; Staco Insurance Plc; Standard Alliance Insurance Plc; Sterling Assurance Nigeria Ltd; Sunu Assurance Plc; Tangerine General Insurance Ltd; Unitrust Insurance Nigeria Ltd; Universal Insurance Plc; Veritas Kapital Assurance Plc and Zenith General Insurance Co. Ltd.
Under Takaful Insurance companies, NAICOM listed the following companies: Crown Takaful Insurance Limited; Hilal Takaful Nigeria Ltd; Jaiz Takaful Insurance Plc; Noor Takaful Insurance Limited; and Salam Takaful Insurance Co.Ltd.
The publication of the list is expected to streamline the enforcement process, enabling vehicle owners to identify and engage only licensed insurers for their motor insurance needs. It also assists law enforcement officers in verifying valid insurance certificates during routine checks, further curbing the proliferation of fake insurance policies.
With this initiative, NAICOM underscores its commitment to improving trust and transparency in Nigeria’s insurance sector while fostering a safer road environment for all Nigerians.
