Explainer: What to Know About Third-Party Insurance as Police Begin Enforcement
- The Nigeria Police Force has commenced nationwide enforcement of third-party motor insurance
- According to Section 68 of the Insurance Act, vehicle owners are required to possess third-party insurance before operating their vehicles on public roads in Nigeria
- The Force's public relations officer, Olumuyiwa Adejobi, has outlined the possible punishment for offenders
Legit.ng journalist Adekunle Dada has over 7 years of experience covering metro, government policy, and international events
FCT, Abuja - Vehicle owners in Nigeria are expected to have the Third-Party Motor Insurance Policy following the nationwide enforcement by the Nigeria Police Force (NPF) effective February 1, 2025.
The NPF explained that the initiative aims to reinforce road safety measures.
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The Force's public relations officer, Olumuyiwa Adejobi, said the policy will ensure vehicle owners comply with the stipulated insurance requirements to protect themselves and others on the road.
What is third-party insurance policy?
Third-Party Motor Insurance is the legal minimum level of motor insurance cover any motor vehicle owner plying the Nigerian road is required to have.
According to Custodian Insurance Plc, it is one of the compulsory insurance policies in Nigeria.
The policy takes care of the damage caused by the insured to the Third Party’s property or vehicle.
It is also responsible for the Third Party’s medical expenses (if any) in the event of an accident, when the policyholder is at fault.
As the name implies, the policy focuses on compensating the third-party for damages caused by the policyholder and not the insured’s car.
What does the law say?
Section 68 of the Insurance Act and Section 312 of the 1945 Motor Vehicle (Third Party Insurance) Act, said all vehicle owners are required to possess third-party insurance before operating their vehicles on public roads.
According to the Act, non-compliance can result in penalties, including fines, imprisonment, or both.
Section 68 of the Insurance Act of 2003 states that:
“(1) No person shall use or cause or permit any other person to use a motor vehicle on a road unless a liability which he may thereby incur in respect of damage to the property of third parties is insured with an insurer registered under this Act."
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Failure to comply
The Police spokesperson, Adejobi warned that the failure of vehicle owners and operators to comply with the new directive will result in strict enforcement actions.
The Police spokesperson said the punishment includes fines or penalties or both, as mandated by relevant extant laws.
However, Nigerians who possess comprehensive insurance policies for their vehicles have nothing to fear about the police enforcement exercise.
This is because the comprehensive insurance policy possesses both the third-party-vehicle insurance coverage and the total insurance package for an insurer’s vehicle.
Section 68, subsection 4 of the Insurance Act of 2003, vehicle owners who contravene the provisions are liable on conviction to a fine of N250,000 or imprisonment for one year or both.
Police set fines for offenders of 3rd-party vehicle insurance
Legit.ng earlier reported that the police commenced the enforcement of the Mandatory Third-Party Vehicle Insurance, effective February 1st, 2025.
The Police explained that non-compliant vehicle owners will face strict penalties, including fines.
Vehicle owners were urged to quickly secure valid insurance to avoid penalties as police are empowered to conduct checks and enforce the law nationwide.
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Source: Legit.ng
