Coronation Insurance Plc has reiterated the critical role of third-party motor insurance in ensuring financial protection and legal compliance. They also addressed the misconceptions surrounding third-party motor insurance and emphasised the consequences of non-compliance.

Speaking during a recent webinar the firm stressed that Section 68 of the Insurance Act (2003) makes it a criminal offense to drive without valid third-party motor insurance. “Many Nigerians don’t realise that driving without third-party insurance is a serious crime. The law is clear—violators face up to one year in prison, a fine of *N250,000*, or both.”

The firm explained that beyond being a legal requirement, the insurance serves as a financial safeguard against the unpredictable risks of road travel.

Government Relations Specialist, inDrive Africa, Mary-Anne Momoh-Ige, highlighted real-life examples to illustrate how a seemingly normal day on the road can turn into a financially and legally distressing situation.

“One moment you’re driving smoothly; the next, you’re faced with medical bills and legal trouble,” she warned, reinforcing the necessity of third-party motor insurance as a financial safety net.

With the Nigeria Police Force intensifying enforcement of third-party motor insurance compliance from February 1, 2025, participants were reminded that failure to adhere could result in immediate penalties, including vehicle impoundment and fines. “Ignorance is not an excuse. Vehicles will be impounded, fines will be issued, and in some cases, legal action may follow,” she said.

Explaining the coverage of third-party motor insurance, Head of Underwriting at Coronation Insurance Ghana, Felix Boateng, noted that it provides compensation for injuries, fatalities, and damages to third-party property. However, he cautioned that certain exclusions apply, such as accidents involving driving under the influence, underage drivers, or vehicles used for illegal activities.

Participants were also advised on how to file a claim in the event of an accident. Head of Retail Claims at Coronation Insurance Plc, Charles Oghiabu, stated that affected parties must report incidents immediately, obtain a First Information Report (FIR) from the police and provide necessary documentation, including accident descriptions, policy details, medical reports, witness statements, and photographic evidence. “A surveyor may be assigned to assess the damage before claims are finalized,” he added, explaining that payouts are made directly to the affected third party or their service provider.

For victims involved in accidents caused by other drivers, the offender’s third-party insurance can cover expenses such as vehicle repairs, medical bills, and compensation for loss of use. This, experts noted, highlights the importance of ensuring that all vehicles on the road have valid insurance coverage.

The affordability of third-party motor insurance was also discussed. Managing Director of Coronation Insurance Plc, Olamide Olajolo, emphasised that for just N15,000 per year, policyholders receive third-party property damage coverage of up to N3 million, as well as compensation for injuries or fatalities. “For less than the cost of a minor car repair, you get legal compliance and financial security,” he stated.

The session concluded with a strong reminder that insurance is not merely a legal requirement—it is a financial strategy. One of the speakers noted, “Insurance is not just about paying premiums; it’s about safeguarding your finances from unexpected disruptions.”