NAICOM Explains Third Party Motor Insurance Benefits, Supports Police Enforcement Nationwide

By Clement Nwoji, Abuja

The National Insurance Commission (NAICOM) has given more insights to the proposed enforcement of the Third Party Motor insurance effective February 1, 2025 by the Nigerian Police Force (NPF) nationwide.

While supporting the NPF for the proposed enforcement exercise on Nigerian roads, NAICOM encourages vehicle owners in Nigeria to take full advantage of the enforcement announced by the Nigerian Police Force to ensure the safety and protection of lives, properties and financial compensation for innocent third parties on our roads.

In a statement by NAICOM management, it articulated the benefits of the Third Party Motor insurance policy to the policy holder in event of occurrence of the incident insured against.

The Commission recalled that the enforcement is in compliance with Section 68 of the Insurance Act 2003.

It explained that The Third Party Motor Insurance is the minimum coverage compulsorily required by law for any vehicle on our roads, while Comprehensive Motor Insurance is optional and recommended.

“The essence of every vehicle on the road having the Third Party Motor Insurance is to facilitate safety of others and ensure the financial recovery/compensation for damages and/or injuries or loss of lives in the event of accidents covered by the policy.

“The Third Party Motor Insurance Policy gives the policyholders the limit of N3 million to repair or replace the property of the innocent third party damaged during an accident. Also, it gives the policyholders access to limited medical care for any injured third party as a result of the accident. In addition, it provides financial compensation to the family of the deceased innocent third party in the event of death.

“Furthermore, the Third Party Motor Insurance Policy now includes third-party motor insurance cover for the vehicle if the vehicle was driven to any West African country based on the protocol of the ECOWAS Brown Card Scheme”, it declared as benefits.

The Commission further advised that the Third Party Motor Insurance Policy can be procured from or through only licensed insurance entities authorized by the National Insurance Commission to transact Motor Insurance business in Nigeria.

In addition, it said the Third Party Motor Insurance Policy is sold for a premium of N15,000 per year to private car owners, while the premiums for commercial vehicles vary depending on the type of vehicles.

Also, the Commission disclosed that a Complaints Bureau is also in place at the National Insurance Commission for resolving all complaints that may emanate from members of the public who may be dissatisfied by an insurance company’s service or response to claims.