Third-Party Motor Vehicle Insurance Enforcement Begins In Nigeria

Nigeria Begins Enforcement of Third-Party Motor Vehicle Insurance

On February 1, 2025, the Nigeria Police officially commenced a nationwide crackdown on third-party motor vehicle insurance compliance, following directives from the Inspector-General of Police, Kayode Egbetokun. This initiative aligns with Section 68 of the Insurance Act and Section 312 of the 1945 Motor Vehicle (Third-Party Insurance) law, mandating that all vehicles operating on public roads possess at least third-party insurance coverage.

Why Third-Party Motor Vehicle Insurance is Essential

Third-party insurance offers financial protection to vehicle owners, passengers, and road users in cases of accidents involving insured vehicles. It ensures that accident victims receive compensation for injuries and damages, thereby reducing financial burdens on individuals affected by road crashes.

Low Compliance and Challenges in Enforcement

Despite being a legal requirement, compliance with third-party motor vehicle insurance remains alarmingly low in Nigeria. Many vehicle owners either neglect or deliberately evade obtaining valid insurance. Weak enforcement, lenient penalties, and a lack of accountability contribute to the widespread disregard for this policy.

Rising Road Traffic Accidents and the Need for Strict Compliance

Nigeria has seen a concerning increase in road accidents in recent years. According to data from the National Bureau of Statistics (NBS), a significant percentage of vehicles on Nigerian roads are uninsured. The Federal Road Safety Corps (FRSC) further reports that uninsured vehicles are frequently involved in road crashes, posing a danger to all road users. Strengthening enforcement of third-party motor vehicle insurance is, therefore, a crucial step in improving road safety and protecting accident victims.

Legal Framework and Compliance Measures

The Nigerian Insurance Act (NIA) mandates all drivers to present valid third-party insurance documents upon request by law enforcement officers. While the Nigeria Police play a central role in enforcement, collaboration with the FRSC, insurance companies, and relevant agencies can enhance compliance. Introducing incentives for insured vehicle owners and imposing stricter penalties for non-compliance may further promote adherence to the law.

Leveraging Technology for Better Enforcement

To improve compliance, law enforcement agencies can integrate digital verification systems that allow officers to quickly check a vehicle’s insurance status during routine inspections. Implementing such technology will make enforcement more efficient and reduce instances of forgery or fraudulent insurance claims.

Public Awareness and Cultural Shift Towards Compliance

Beyond enforcement, public education campaigns can help motorists understand the significance of third-party insurance, emphasizing its role in protecting lives and properties. Community engagement initiatives involving law enforcement, insurance companies, and civil society groups can drive a cultural shift where insurance is viewed not merely as a legal obligation but as a necessary safeguard for road users.

A Safer Future with Strict Insurance Enforcement

By ensuring that all vehicles on Nigerian roads carry valid third-party insurance, the nation can significantly reduce uninsured vehicle-related accidents. Increased compliance will lead to better compensation for victims, fostering a safer and more accountable driving environment.

The success of this policy hinges on a collective effort from law enforcement agencies, insurance companies, policymakers, and the public. With stringent enforcement, technological integration, and widespread awareness, Nigeria can achieve a road network where every driver values safety and accountability.