The Nigerian Association of Road Transport Owners (NARTO), a key stakeholder in the nation’s transportation sector, has expressed its unwavering support for the Nigeria Police Force’s (NPF) renewed commitment to enforcing the mandatory third-party motor insurance policy. NARTO President, Yusuf Othman, articulated the association’s stance, emphasizing that responsible vehicle owners and renewal agencies inherently link third-party insurance with vehicle documentation, making compliance an almost automatic process. Othman further highlighted that the enforcement, far from being a source of apprehension, is welcomed as a positive step towards bolstering government revenue, which, in turn, can be utilized for infrastructural development and other initiatives beneficial to the transport sector. This proactive stance demonstrates the association’s recognition of the interconnectedness between compliance, revenue generation, and sector-specific development.
The decision by the NPF to rigorously enforce the third-party motor insurance policy, effective February 1, 2025, has been met with widespread acclaim from various stakeholders within the insurance industry. This enforcement initiative has been recognized as a crucial catalyst for deepening insurance penetration within the country. Bàbàtunde Oguntade, President/Chairman of the Governing Board of the Nigerian Council of Registered Insurance Brokers (NCRIB), lauded the IGP’s directive, emphasizing its nationwide reach and potential impact. Oguntade underscored the collaborative nature of the insurance industry, expressing confidence that the NPF’s involvement would significantly boost the market, benefiting all stakeholders through the inherent principle of risk-sharing within the insurance mechanism. He further emphasized the importance of the ECOWAS element embedded in the third-party insurance framework, highlighting its cross-border applicability and significance.
The relatively low cost of the third-party insurance policy, N15,000, compared to its extensive benefits, reinforces its importance as a critical component of vehicle ownership and road safety. Oguntade’s assertion that widespread understanding of these benefits would eliminate the need for enforcement underscores the need for increased public awareness and education regarding the value and implications of third-party insurance. The NCRIB’s support for the NPF’s initiative reflects the industry’s understanding of its potential to transform insurance practices and improve road safety across the nation.
The Nigerian Insurers Association (NIA), another prominent voice within the insurance sector, echoed the positive sentiments surrounding the NPF’s enforcement drive. The NIA, in an official statement, affirmed the alignment of the enforcement with Section 68 of the Insurance Act 2003, emphasizing its potential to strengthen compliance, enhance road safety, and provide crucial protection for both motorists and third parties involved in road accidents. The NIA’s endorsement further solidifies the industry’s unified stance on the importance of third-party insurance enforcement.
Mr. Kunle Ahmed, Chairman of the NIA, described the NPF’s action as timely and commendable, highlighting the multifaceted benefits of enforcing third-party motor insurance. Beyond mere compliance, Ahmed emphasized its role as a vital financial safety net for accident victims and vehicle owners alike. The policy’s provisions for compensating property damage and covering medical expenses for injured third parties are crucial in fostering trust and confidence in the insurance sector. The NIA’s recognition of the enforcement’s potential to drive positive change within the insurance industry and the broader economy underscores the significance of this initiative.
The NIA anticipates a substantial impact on the insurance landscape, projecting an increase in the number of genuinely insured vehicles, a reduction in fraudulent insurance practices, and a more robust safety net for all road users. With millions of vehicles traversing Nigerian roads, the enforcement of third-party insurance is poised to become a significant driver of growth and stability within the insurance sector while simultaneously enhancing road safety for all citizens. This collective support from key industry players underscores the transformative potential of the NPF’s initiative in promoting responsible vehicle ownership and fostering a safer road environment for all.
