1 week ago
24
…NAICOM, FRSC strengthen compliance, warn insurers
By Henry Uche
As third-party motor insurance enforcement tightens across Nigeria, concerns are mounting over alleged police extortion of defaulters, while regulators intensify efforts to ensure compliance.
Industry experts emphasise that motor insurance is not just a legal requirement but a crucial safety net for all road users.
In response, the National Insurance Commission (NAICOM) has partnered with the Federal Road Safety Corps (FRSC) and other stakeholders to curb non-compliance and ensure timely settlement of genuine claims.
Since the enforcement of the Third-Party Motor Insurance policy by (NAICOM) and the Nigerian Police Force, many Nigerians have expressed outrage over the approach taken by law enforcement officers. Motorists have accused the police of high-handedness in clamping down on vehicle owners, with some even questioning the legitimacy of the police in verifying third-party insurance documents.
Despite the policy’s legal backing, a significant number of both commercial and private drivers remain largely unaware of its purpose and benefits.
This lack of awareness has led to widespread resistance and heated confrontations between motorists and police officers across major cities in Nigeria.
A Daily Sun investigation revealed that in several locations, particularly in Lagos, traffic congestion has worsened due to drivers refusing to comply immediately, leading to prolonged standoffs and roadblocks during police checks.
Observations from the enforcement exercise revealed that many police officers lack a clear understanding of the distinction between Comprehensive Motor Insurance and Third-Party Motor Insurance. This gap in knowledge has made it evident that proper training is essential before officers can effectively carry out enforcement.
In response to this challenge, the Commissioner for Insurance (CFI) and Chief Executive Officer of the National Insurance Commission (NAICOM), Mr. Olusegun Omosehin, earlier called on insurance operators to embark on an extensive public awareness campaign.
However, whether this awareness was adequately carried out remains debatable. The consequences of this information gap are now being felt across the country, particularly by motorists, who have borne the brunt of enforcement efforts over the past 12 days.
Despite these concerns, the NAICOM boss has reaffirmed the Commission’s unflinching support for the Nigerian Police Force (NPF), assuring that the necessary resources and training will be provided to ensure a seamless and effective enforcement process nationwide. Through the collaboration, NAICOM aims to enhance the integrity of Nigeria’s road safety framework, offering better protection for road users while fostering a culture of compliance with this critical policy.
However, despite these assurances, the timing, readiness and capacity of police personnel to enforce the policy have come under scrutiny from opinion leaders, public affairs analysts, social commentators, and industry experts.
Third-Party Motor Vehicle Insurance remains a crucial safeguard in the automotive sector, providing financial protection against damages inflicted by an insured vehicle on a third party. As a mandatory policy in many countries, including Nigeria, it serves as a critical mechanism for ensuring fair compensation for accident victims, reinforcing accountability, and promoting safer roads for all.
Here’s the version with only typographical and punctuation errors fixed while preserving the original context:
To further strengthen its muscle, there was a cross-pollination of ideas between NAICOM and the Federal Road Safety Corps (FRSC) just recently to enforce compliance with compulsory vehicle third-party insurance.
The collaborative effort aims to promote a safer and more secure environment for all road users.
During the working visit to the FRSC headquarters in Abuja, the Commissioner for Insurance, Mr. Olusegun Omosehin, commended the Corps Marshal, Shehu Mohammed, for his efforts in ensuring road safety in Nigeria.
Mr. Omosehin highlighted NAICOM’s role in regulating the insurance industry and driving growth and development in the country.
Emphasizing the importance of this insurance cover under review, the Commissioner outlined benefits in two parts: first, Financial Benefits and Non-Financial Benefits. Under financial benefits, victims of damage caused by insured vehicles are entitled to N3 million, while in the event of death, the compensation is unlimited, depending on the value of the deceased individual. Non-financial benefits include financial safety, peace of mind, and confidence in compliance with government regulations.
The CFI called for improved collaboration between NAICOM and FRSC to ensure road safety, emphasizing that while it is the primary duty of FRSC, it is also an auxiliary duty of NAICOM to provide risk-mitigating measures through policy regulations.
In response, Corps Marshal Shehu Mohammed assured Omosehin of his partnership, stating that the third-party insurance policy is the primary responsibility of the Road Safety Corps and part of the National Road Traffic Regulation, which makes it compulsory for every vehicle owner to have.
Reacting to the frequent standoffs between the enforcers of the policy and vehicle owners, AIICO Insurance has maintained that, beyond compliance, third-party motor insurance is important for everyone on the road.
In a statement delivered by Mr. Moses Olajuwon Obajemu, Head, Media Relations (Kayode Akinyemi & Co), AIICO reminded Nigerians that every uninsured vehicle on Nigerian roads poses significant risks, with countless road users facing financial and emotional distress each year due to accidents involving vehicles without valid insurance.
According to the statement, sometimes, people have to pay for medical bills, car repairs, or other losses after a car accident. Therefore, if everyone involved had insurance, it would help cover these costs and reduce the financial burden. But that doesn’t always happen.
“The situation is worse when the person responsible for the accident does not have valid insurance to compensate the victims. This type of insurance is called third-party insurance.
“In Nigeria, many cars, especially commercial vehicles, do not have valid insurance. This leaves accident victims with no financial support. They are often forced to bear the costs themselves because the responsible driver cannot pay for the damage. With the rising cost of living, the financial impact of road accidents can be devastating, emphasizing the critical need for motorists to comply with insurance regulations and protect themselves and others on the road.”
It is against this backdrop that the Nigerian Police Force has commenced the enforcement of the Third-Party Motor Insurance policy, effective from February 1, 2025. This move is not only a necessity for public safety but also a legal requirement backed by extant laws. Third-party motor insurance is the most basic form of coverage that every vehicle owner should possess. It ensures that in the event of an accident, affected third parties receive due compensation, mitigating financial burdens on individuals and businesses alike.
AIICO Insurance Plc, a trusted name in the insurance industry for over 60 years, assured that it remains at the forefront of providing timely and reliable claims settlements, having built a strong reputation for ensuring that genuine claims are processed efficiently, offering relief to policyholders and third parties alike.
“As the enforcement of third-party motor insurance intensifies, AIICO continues to reinforce the importance of securing valid insurance coverage as a safeguard against unforeseen liabilities. To further simplify access to third-party motor insurance, AIICO has made it easy for vehicle owners to obtain coverage within minutes. Anyone can sign up for a valid policy seamlessly via the company’s website, ensuring compliance with the law while securing financial protection against unforeseen accidents.
“The enforcement of this policy is not merely a regulatory requirement but a necessary step toward creating safer roads and a more responsible driving culture. By ensuring compliance, authorities are taking a proactive approach to reduce the financial and emotional burdens that accidents impose on innocent third parties. The message is clear: having valid third-party motor insurance is not just a legal obligation—it is a vital safety net for all road users,” the underwriter reiterated.
Similarly, the need for more education on the enforcement of third-party motor insurance has become necessary for Nigerians. This is according to the Chairman of the Corporate Affairs Committee of the Nigerian Insurers Association (CAMCONIA), who doubles as the Head of Corporate Communications & Investor Relations at Sovereign Trust Insurance Plc, Mr. Segun Bankole.
Lending his voice to the matter under review, Mr. Bankole said it has become imperative that some form of education is put out for the benefit of the insuring public, the general public, and officers of the Nigerian Police Force who are saddled with the responsibility of enforcing the implementation of the third-party motor insurance policy.
In his words, “There have been complaints from some members of the insuring public about the way and manner the enforcement is being carried out, which needs to be addressed to avoid any form of misunderstanding between motorists and the law enforcement officers across the country.”
CAMCONIA Chairman observed that quite a number of comprehensive motor policyholders from various insurance companies have been at the receiving end since the enforcement began. They argued that the law enforcement officers do not recognize their comprehensive motor insurance policy and insist that they should go and get the third-party motor insurance cover as directed by the Inspector General of Police.
For the avoidance of doubt, the IGP, in his broadcast, categorically stated that “at least a Third-Party Motor Insurance Policy is required for anyone to have his or her vehicle on the road in Nigeria as from February 1, 2025.”
“Third-party motor insurance offers policyholders indemnity against legal liabilities to third parties for death, injury, and property damage. On the other hand, comprehensive motor insurance covers loss or damage from accidents, fire, theft, and third-party liabilities, as well as own damage. In other words, it is valid and relevant under Section 68 of the Insurance Act of 2003 and the Third-Party Motor Insurance Act of 1950.”
He added that the collaboration between the Nigerian Police Force and NAICOM in ensuring that motorists across the country have at least a third-party motor insurance policy is a very good and welcome development that should earn the trust of Nigerians.
“We need more enlightenment on the enforcement and urge motorists to embrace the development and see it as a way forward to protecting the lives and properties of Nigerians when road crashes occur, especially for third parties,” he advocated.
Meanwhile, interviews with some drivers in some quarters revealed that most vehicle owners were not happy with the whole exercise, as they complained and lamented over extortion by law enforcement agents.
These drivers said they had to reach out to their insurers for confirmation before the police could let them go—this was for those who were not ready to offer any form of graft to the officers on the roads.
“We hear say our colleagues were asked to settle them or else they go carry your motor to their station. So we need to understand this thing better because people are just confused. Which one is this? We know that safety is good for all of us, but let us not make things difficult for ourselves. The Nigerian economy is very bad; we can make people understand this gradually and enforce it little by little. Let people see what to eat on a daily basis first before we talk about other minor issues,” a driver implored.
Meanwhile, a security and safety expert, Mr. Ojo Kennedy, has urged insurance operators to begin working with driving schools across the country, the Federal Road Safety Corps, and others to ensure that anyone handling the steering wheel understands and possesses the basic documents required by Nigerian law, whether as a private or public driver.
According to him, when the police or FRSC officials catch a driver without the basic insurance cover, such a driver should be directed to the nearest insurance company to obtain coverage instead of being subjected to undue hardship.
“This is a simple thing to do. Let there be synergy among them. A proactive measure should be taken right from the point of car purchase, learning to drive, and before issuing a driver’s license. All hands must be on deck. We have other dehumanizing issues dehydrating Nigerians physically, emotionally, psychologically, and otherwise. Let’s learn to tackle our challenges in order of priority and swiftly, too. This is where true leadership comes into play. Our economic and political leaders must learn the essence of sound management and administration,” he added.
English (US) ·