At a time of severe economic hardship when motorists lament the high cost of fueling their vehicles, the Nigerian Police has vowed to enforce procurement of third party vehicle insurance and the Nigerian Insurers Association (NIA) says the move is a game changer.
The Nigerian Insurers Association on Monday lauded the Inspector-General of Police and the Nigeria Police Force (NPF) on the recent announcement on enforcement of Third-Party Motor insurance policy nationwide.
It described it as a game-changer which would encourage greater public trust in insurance, reduce uninsured risks and stimulate economic activity.
The Inspector-General of Police, Kayode Egbetokun, on January 10, said the Nigerian Police would commence total enforcement of the compulsory third party motor insurance, effective Feb.1.
Egbetokun said the enforcement would also affect other relevant laws on compulsory insurance in the country.
Reacting, the Chairman of NIA, Mr Kunle Ahmed, in a statement, in Lagos, welcomed the development, describing it as ‘a timely and commendable action’.
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Ahmed said the decision aligned with the provisions of Section 68 of the Insurance Act 2003.
The I-G stated that it was a significant step towards strengthening compliance, ensuring road safety and protecting motorists and other parties on Nigerian roads.
He further noted that it was important to enforce the policy to improve risk management, industry innovation and foster economic growth.
According to him, the enforcement of third-party motor insurance is not only a compliance issue, but also a vital strategy for ensuring financial protection for victims of road accidents and car owners.
Ahmed explained that the third-party insurance policy also provides compensation for property damage and medical care for injured third parties, which further contributes to building confidence in the insurance sector.
“The NIA recognises the immense potential of this enforcement to drive positive change in the insurance industry and the broader economy.
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” With millions of vehicles on Nigerian roads, this move is expected to increase the number of genuinely insured vehicles, reduce the prevalence of fake insurance policies, and create a more robust safety net for motorists and road users alike,” he said.
According to him, the initiative also aligns with his administration’s agenda to proritise increasing awareness on the benefits of insurance, fostering innovation within the industry, as well as enhancing partnerships with key stakeholders to strengthen Nigeria’s insurance ecosystem.
He said: “As the enforcement takes effect, I want to assure the insuring public and other stakeholders that our members are fully prepared to provide seamless access to third party motor insurance policies.
“This will be done through authorised channels, ensuring that every Nigerian motorist can protect their risk and comply with the law.
“We will work closely with our members to ensure efficient service delivery, innovative products, and improved customer experiences.”
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“The NIA believes this enforcement is a game-changer for the industry, as it will encourage greater public trust in insurance, reduce uninsured risks, and stimulate economic activity.”
The chairman said NIA had also set up initiatives to collaborate with the National Insurance Commission (NAICOM) in increasing public awareness and sensitisaton efforts.
Ahmed explained that this is to educate Nigerians about the benefits of genuine motor insurance policies.
He charged vehicle owners nationwide to take full advantage of the opportunity to obtain their third-party motor insurance policies through licensed and authorised insurers.
“We can build a safer, more accountable, and better-protected road network for all Nigerians,” he said.