The Nigerian insurance landscape is poised for a significant transformation with the impending nationwide enforcement of the Third-Party Motor Insurance Policy, slated to commence on February 1, 2025. This initiative, championed by the Inspector-General of Police and the Nigeria Police Force, mandates all vehicle owners to possess valid third-party insurance, aligning with the provisions of Section 68 of the Insurance Act 2003. The Nigerian Insurers Association (NIA), the umbrella body for insurance companies in Nigeria, has lauded this move as a critical step towards enhancing road safety, protecting motorists and third parties, and bolstering the insurance sector’s contribution to the national economy.
The NIA Chairman, Mr. Kunle Ahmed, emphasized the multifaceted benefits of enforcing this policy. Beyond mere compliance, he highlighted its crucial role in providing financial protection for road accident victims and vehicle owners alike. Third-party insurance covers compensation for property damage and medical expenses for injured third parties, fostering a greater sense of security and responsibility among road users. This, in turn, builds public trust in the insurance industry and promotes its growth and development. The anticipated surge in the number of genuinely insured vehicles will significantly reduce the prevalence of fake insurance policies, a long-standing challenge that has undermined the industry’s credibility and effectiveness.
The enforcement aligns seamlessly with the NIA’s strategic objectives, which include raising public awareness about the benefits of insurance, driving innovation within the industry, and strengthening collaborations with key stakeholders. Mr. Ahmed reassured the public that NIA members are fully prepared to facilitate easy access to third-party motor insurance policies through authorized channels. The association is committed to ensuring efficient service delivery, innovative product offerings, and enhanced customer experiences to meet the growing demand for insurance services. This collaborative approach between the NIA and its members underscores the industry’s commitment to supporting the enforcement initiative and maximizing its positive impact.
This initiative is projected to be a game-changer for the Nigerian insurance industry. By mandating third-party insurance, it creates a larger pool of insured vehicles, leading to increased premium collections and strengthening the financial base of insurance companies. This, in turn, empowers them to invest in innovative products and services, expand their reach, and contribute more significantly to national economic growth. Furthermore, the reduction in uninsured risks will translate to fewer instances of financial hardship for accident victims and their families, mitigating the social and economic consequences of road accidents.
The NIA recognizes the importance of public awareness and education in ensuring the success of this initiative. The association is collaborating with the National Insurance Commission to launch sensitization campaigns aimed at educating Nigerians about the benefits of genuine motor insurance policies. These campaigns will highlight the legal implications of non-compliance, the financial protection provided by third-party insurance, and the ease of obtaining valid policies through authorized channels. By empowering vehicle owners with the necessary information, the NIA aims to foster a culture of compliance and responsible road usage.
The NIA’s call to action is clear: all vehicle owners in Nigeria are urged to obtain valid third-party motor insurance policies from licensed and authorized insurers. This is not just about adhering to the law; it’s about contributing to a safer, more accountable, and better-protected road environment for everyone. The enforcement of the Third-Party Motor Insurance Policy represents a significant step towards building a more robust and inclusive insurance sector in Nigeria, one that effectively safeguards the interests of all stakeholders and contributes meaningfully to national development. This concerted effort by the government, the insurance industry, and the public will pave the way for a more secure and prosperous future for all Nigerians. The NIA remains steadfast in its commitment to supporting this transformative initiative and ensuring its successful implementation for the benefit of all.
