Insurers Back Nationwide Enforcement of Third-Party Motor Insurance
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The Nigerian Insurers Association (NIA) has welcomed the recent directive by the Inspector-General of Police to enforce the Third-Party Motor Insurance Policy across the country from February 1, 2025. The move, which aligns with Section 68 of the Insurance Act 2003, is expected to bolster compliance, enhance road safety, and provide critical financial protection for motorists and third parties.
In a statement, NIA Chairman Mr Kunle Ahmed described the initiative as a much-needed intervention that underscores the importance of risk management in Nigeria’s transportation sector.
“The enforcement of third-party motor insurance is not merely a regulatory requirement; it is an essential mechanism for safeguarding victims of road accidents and car owners alike,” Ahmed said. “This policy ensures compensation for property damage and medical care for injured third parties, fostering trust and confidence in the insurance industry.”
Ahmed noted that the directive represents a turning point for the insurance sector. With millions of vehicles on Nigerian roads, mandatory compliance is expected to address the pervasive issue of fake insurance policies, increase the number of insured vehicles, and strengthen the financial safety net for motorists and road users.
Driving Transformation in Insurance
Ahmed highlighted the NIA’s commitment to leveraging the initiative to drive awareness of insurance benefits, foster innovation, and strengthen partnerships with key stakeholders to build a resilient insurance ecosystem.
“As the enforcement takes effect, our members are fully prepared to offer seamless access to third-party motor insurance policies through authorised channels,” he assured. “Every Nigerian motorist will have the opportunity to protect themselves and comply with the law, while benefiting from improved customer experiences and innovative products.”
Ahmed described the police directive as a “game-changer,” emphasising its potential to stimulate economic activity by reducing uninsured risks and building greater public trust in insurance.
A Call to Action for Motorists
The NIA also announced plans to collaborate with the National Insurance Commission to amplify public awareness campaigns, educating Nigerians on the importance and benefits of obtaining genuine third-party motor insurance policies.
“We call on vehicle owners across the country to seize this opportunity by obtaining their insurance policies from licensed and authorised insurers,” Ahmed urged. “Together, we can create safer roads, enhance accountability, and build a better-protected society.”
As February 2025 approaches, the industry looks to this enforcement as a pivotal moment for the insurance sector and its role in ensuring safety and stability on Nigerian roads.
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