The Nigeria Police Force on February 1, launched a nationwide enforcement of third-party motor insurance.

This new initiative aims to curb the high number of uninsured vehicles on Nigerian roads and provide victims of accidents with proper compensation.

While the policy was established under the Insurance Act of 2003, many Nigerians, especially vehicle owners, remain uncertain about the details and implications of this enforcement.

The enforcement exercise is kicking off simultaneously across the country.

Motorists without valid third-party insurance have been advised to comply or face the consequences.

A press statement by the National Insurance Commission, NIC, titled ?Understanding the Latest Announcement of the Enforcement of Third-Party Insurance by the Nigeria Police Force,? explained that latest enforcement.

What third-party insurance means

Third-party insurance is the minimum coverage compulsorily required by law for any vehicle on Nigerian roads, while Comprehensive Motor Insurance is optional and recommended.

?The National Insurance Commission welcomes the announcement by the Nigeria Police Force that, effective 1st February 2025, there will be a nationwide enforcement of Third-Party Motor Insurance for all vehicles on Nigerian roads.

?This move aims to ensure compliance with Section 68 of the Insurance Act 2003.

?The Commission recognizes that many Nigerians, especially vehicle owners, may not fully understand the importance of the law or 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:

?Third-Party Motor Insurance is the minimum coverage compulsorily required by law for any vehicle on our roads, while Comprehensive Motor Insurance is optional but recommended.

?The purpose of every vehicle on the road having Third-Party Motor Insurance is to ensure the safety of others and provide financial compensation for damages, injuries, or loss of life in the event of accidents covered by the policy.

?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.

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 vehicle.

?The Third-Party Motor Insurance Policy offers policyholders coverage up to N3 million to repair or replace the property of an innocent third party damaged during an accident.

?It also provides 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 coverage for the vehicle if driven to any West African country, as per the ECOWAS Brown Card Scheme.

?The Commission 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.

?A Complaints Bureau is also in place at the National Insurance Commission for resolving any complaints from the public who may be dissatisfied with an insurance company?s service or response to claims.? (Vanguard)

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