On February 1, 2025, the Nigeria Police began nationwide enforcement of the third-party motor insurance policy as earlier announced by the Inspector-General of Police, Kayode Egbetokun. The move, in line with Section 68 of the Insurance Act and Section 312 of the 1945 Motor Vehicle (Third Party Insurance), is to ensure that every vehicle in the country possesses a minimum of third-party insurance before operating on public roads.
Third-party vehicle insurance protects vehicle owners and passengers from financial liabilities in accidents caused by insured vehicles. It serves as a safety net for victims, ensuring they receive compensation for damages and injuries sustained in road accidents.
But despite its importance, compliance remains low. Notwithstanding regulatory requirements, many vehicle owners do not maintain valid vehicle insurance. Enforcement is weak, leading to high levels of non-compliance. The current laws lack stringent penalties for violations. Worse still, the system lacks accountability.
In recent years, Nigeria has witnessed a troubling rise in road traffic accidents. As the nation grapples with the challenge, the enforcement of third-party motor vehicle insurance becomes a critical component in promoting road safety and protecting the rights of victims.
Data from the National Bureau of Statistics, NBS, shows that a high percentage of vehicles on Nigerian roads are uninsured. Drivers of uninsured vehicles are dangerous to themselves and other road users. The Federal Road Safety Corps, FRSC, confirms that majority of the road accidents involve uninsured vehicles.
The Nigerian Insurance Act, NIA, provides the legal foundation for third-party insurance. Drivers must present valid insurance documents upon demand by law enforcement agents. Although the Police have a crucial role in this, collaboration between them, the FRSC and insurance companies can enhance enforcement. Rewards for compliance can also foster a culture of responsibility.
To effectively enforce third-party motor vehicle insurance, the Police must adopt a multi-faceted approach leveraging technology such as integrating digital platforms for verifying insurance status and making it easier to check compliance during routine stops. Public awareness campaigns can educate motorists about the importance of third-party insurance and highlight the legal consequences of driving without it.
Effective enforcement can lead to a decrease in uninsured vehicles. As compliance rises, the risk of accidents involving uninsured vehicles will diminish. More vehicles with valid insurance means better compensation for road accident victims.
Enforcement of third-party motor vehicle insurance requires a collaborative effort accompanied by a cultural shift within society that transcends the police force. It calls for a united front involving the law enforcement agencies, insurance companies, community leaders and the public to create a safer driving environment.
Motorists need to recognise that insurance is not merely a legal requirement but a vital enforcement of safety. This change in mindset can be fostered through community engagements that emphasise the importance of insurance.
