2 days ago
26
By Henry Uche
Director General of Nigerian Insurers Association (NIA), Mrs. Bola Odukale, has assured that operators in the industry remain resolute in the enforcement of the mandatory third-party insurance in Nigeria as compliance safeguards road safety and provides essential protection for vehicle owners.
She also noted that rhe enforcement decision was consistent with National Insurance Commission (NAICOM’s) directive.
This comes as a significant number of car owners call for an extension, seeking more time to secure the mandatory vehicle insurance coverage.
The DG made the pledge when the executive members of the Nigerian Association of Insurance and Pension Editors (NAIPE) paid her a courtesy visit at NIA head office in Lagos recently.
The National Insurance Commission (NAICOM) recently collaborated with the Nigerian Police Force and the Federal Road Safety Corps (FRSC) to ensure the smooth enforcement of third-party motor insurance, which took effect from February 1, 2025. Since these three agencies ramped up their efforts, there have been notable results in the push for compliance.
However, a significant number of vehicle owners across the country are now pleading with both the federal government and NAICOM to show leniency by granting more time to either secure new third-party motor insurance policies or renew their existing ones.An investigation by Daily Sun revealed that all the vehicle owners interviewed made this appeal informally, without any official documentation.
At the time of writing this report, no formal notice had been issued by the regulator regarding any requests for an extension.
However, it was gathered that NAICOM is aware of the widespread plea from Nigerians seeking additional time to meet the deadline. Whether or not these appeals will be granted remains at the discretion of NAICOM’s Board and Management. The investigation also uncovered that some drivers are requesting an extension of one month, others are hoping for two months, while a portion is asking for as much as three months.
To assess whether vehicle owners deserve an extension of one to three months to fulfill their insurance obligations, Mr. Segun Bankole, the Head of Corporate Communications & Investor Relations at Sovereign Trust Insurance Plc, clarified in a telephone interview that acquiring or renewing third-party motor insurance takes only a few minutes. This quick process highlights the progress insurers have made in embracing digital solutions to enhance customer satisfaction.
In contrast to the belief held by many Nigerians that enforcement might be relaxed after a month, the Director General of the Nigerian Insurers Association (NIA) assured NAIPE executives that the conversation surrounding this issue would not end in February. Rather, it would continue with renewed determination and vigor. This proactive stance is driven by the widespread ignorance and resistance among the public, which necessitates a more persistent approach to enforcement.
According to her, it is evident that many Nigerians possess limited knowledge about insurance, and some who are aware choose to disregard it. Ideally, insurance should be a household name. This is why more schools, including secondary institutions, are now incorporating Insurance as part of their curriculum, encouraging young people to embrace the concept early on and preparing them for potential careers in the field.
It is worth noting that in November 2024, Sovereign Trust Insurance Plc took part in the annual “Catch-Them-Young” initiative at Igbobi College, Yaba, where they engaged with students to highlight the essential role insurance plays in everyone’s life.
Supporting these efforts, Mrs. Odukale emphasized the need for ongoing insurance awareness campaigns to dispel the negative perceptions and misconceptions surrounding the industry. She further stressed that insurance professionals must continuously engage with the public, partnering with the media to maintain visibility and drive understanding.
“Image making is part of the business of insurance especially for an industry like ours that everybody claims much of the time that they don’t know much about. We keep hearing things like ‘we don’t know anything about insurance’ and the feedback is always like everybody seems to lack knowledge of insurance in its entirety. Everybody seems to be in the dark about insurance or what insurance is all about and this has been a recurring decimal as far as the trajectory of the industry is concerned.
“So, what that says to me is that there must be continuous engagement, we must continuously put ourselves in the face of the people. Nobody will say they don’t know what the banks do. Lot of people don’t claim the kind of ignorance about the banking sector like they claim about the insurance sector.
“Hence, the fact remains that the media is part of us and the image maker of the industry. Collectively as an industry, you remain the image maker of our industry. You are a vital part of us as far as this industry is concerned, hence matters with you cannot be taken with levity and I want to assure you that we are going to be working together.”
She affirmed, “What that means is that we still have a lot of work to do and we must continuously ensure that we do the right thing, continuously projecting our industry out there and in a very bright light.
I am saying that to reemphasize the fact that you are key to us, and we are also willing to work together with you.”
She added: “Third party awareness is going to be sustained for the long haul because this is not about third parties but about insurance. We are bringing insurance awareness closer to the people, even though we are focusing on third parties. It is still talking about insurance, letting people know that there is something called insurance”
“Talking about this third party has shown that a lot of awareness creation is required. So we will work with the Media over the long haul, so that we sustain the tempo. So we appeal to insurance journalists to collaborate with the industry to project the sector in a positive light and protect the industry.
“A lot of us have prospered from this industry, so it behooves us to protect the industry in terms of our reporting. When we are doing our balanced reporting, we should ask ourselves, ‘what is the end result? So that at the end of the day if anybody reads anything about the industry, how does it settle in the person’s mind. Does it make the person have a better perspective of this industry?” she queried.
Meanwhile, the Chairperson of NAIPE, Mrs. Nkechi Naeche-Esezobor charged insurance operators to carry out regular briefing with the media to keep the journalists abreast with developments in the industry.
While encouraging her colleagues to intensify efforts to spread the gospel of insurance, Nkechi said: “The NIA can collaborate with the media on awareness creation through quarterly briefings on developments in the sector. By this, the media will be aware of developments in the sector and adequately push out the message to the public.”
To alleviate the challenges faced by vehicle owners, some insurers, such as Heirs Insurance, have introduced a variety of tailored packages aimed at reaching car owners across the country. This strategic move is designed to capture a significant portion of the underserved rural market.
More so, Universal Insurance in an exclusive interview with Daily Sun said it was positioning to rake in N1 billion this year year from the third-party motor insurance.
Other insurers are also counting huge Gross Premium Written in millions as drivers rush to obtain this statutory document.
Nevertheless, insurance experts in the country have urged vehicle owners to secure this essential document, especially if they cannot afford comprehensive coverage. They emphasize that prevention is far more cost-effective than dealing with the consequences of ignorance and neglect.
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