Nigerian police to enforce third-party insurance from February 1
Joy Agwunobi
L-R: Olusegun Ayo Omosehin, NAICOM CEO during a courtesy visit to Police IGP, Kayode Egbetokun, recently
Motorists across Nigeria are being urged to ensure that their vehicles are properly registered and insured as the Nigerian Police Force has announced plans to commence a nationwide enforcement of vehicle insurance laws starting February 1, 2025.
This initiative, undertaken in collaboration with the National Insurance Commission (NAICOM), is designed to boost compliance with existing insurance laws while prioritising the safety of lives and property.
Kayode Egbetokun, Inspector General of Police (IGP) disclosed this directive during a courtesy visit by Olusegun Ayo Omosehin, the Chief Executive Officer (CEO) of NAICOM, to the Police Force Headquarters in Abuja.
Highlighting the alarming non-compliance rate, Egbetokun revealed that only 30 per cent of vehicles on Nigerian roads possess valid insurance. “It is disheartening that such a large number of vehicles are operating without genuine insurance coverage,” he said, adding that it is a criminal offense to operate a vehicle without at least a third-party insurance policy.
“The third-party insurance is the minimum level of insurance cover that is required by law, section 68 of the Insurance Act, and Sections 3(1) and (2) of the Motor Vehicle Third Party Insurance Act make it mandatory for all vehicle owners to have a minimum of third-party insurance before they put their vehicles on the road. It is a requirement for road ordinance of vehicles on Nigerian roads.” Egbetokun stated
The section 68(1) of the Insurance Act 2003, which explicitly states: “No person shall use or permit any other person to use a motor vehicle on a road unless a liability which he may thereby incur in respect of damage to the property of third parties and/or injury caused to third parties is insured with an insurer registered under this Act.” Furthermore, Sub-section 4 of the Act specifies penalties for violators, including a fine of up to N250,000 or imprisonment for one year, or both.
During his speech, Egbetokun emphasised the importance of third-party insurance, describing it as the minimum level of coverage required for vehicles to operate legally on Nigerian roads.
He stated, “The enforcement of this law has been part of our daily activities, but unfortunately, reports from the Nigerian Insurance Association show that less than 30 per cent of vehicles are insured. This is a challenge, and I want to assure the public that we are taking it very seriously.”
He further emphasised the multiple benefits of enforcing third-party insurance. According to him, “This law protects Nigerian citizens by ensuring victims of road accidents receive the compensation they deserve. It also safeguards passengers in commercial vehicles and promotes responsible driving. Beyond these, the economic benefits are substantial. A robust insurance industry contributes to job creation and economic growth, helping to reduce unemployment in the country.”
Egbetokun also pointed out that compliance with insurance laws encourages better road behavior among drivers. “When motorists know they will be held accountable for their actions, they are more likely to adopt responsible driving habits,” he said.
He reiterated that from February 1, 2025, enforcement efforts would be intensified, warning that non-compliance would result in legal consequences, including fines or imprisonment.
On his part, Olusegun Ayo Omosehin, NAICOM’s CEO, commended the IGP for his leadership and significant strides, particularly the establishment of the Police Insurance Bank Limited. He also highlighted the critical role of the Nigerian Police Force in ensuring compliance with insurance regulations.
“We need the full support of the police to enforce compulsory third-party insurance, which offers immense benefits to all road users,” Omosehin stated.