The National Insurance Commission has backed the Nigerian Police Force on the enforcement of the Third Part Insurance Policy.
The backing follows a recent announcement made by the Inspector-General of Police (IGP), Kayode Adeolu Egbetokun that the police will from February 1,2025 commence the enforcement of compulsory Motor Third Party Insurance among motorists nationwide.
NAICOM said on Wednesday that it welcomes the announcement by the Nigeria Police Force that with effect from 1st February 2025.
NAICOM said, “This move aims to ensure compliance with Section 68 of the Insurance Act 2003. The Commission recognises that many Nigerians, especially vehicle owners, may not fully understand the importance of the law and the benefits of the Third Party Motor Insurance Policy. So, what does this mean for vehicle owners in Nigeria? To answer this question, the Commission states as follows.”
The regulator explained that 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.
NAICOM said, “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 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.”
NAICOM said the Third Party Motor Insurance Policy gives the policyholders the limit of N3m to repair or replace the property of the innocent third party damaged during an accident.
NAICOM added, “It gives the policyholders access to limited medical care for 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.
“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 said a Complaints Bureau has been put 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.