NIA lauds move to enforce third-party insurance policy

Nigerian Insurers Association (NIA) has applauded the Nigeria Police Force (NPF) for planning to enforce the Third-Party Motor Insurance Policy nationwide, effective February.

The association said the plan aligned with the provisions of Section 68 of the Insurance Act 2003, saying the police move is a significant step towards strengthening compliance, ensuring road safety and protecting motorists and third parties on Nigerian roads.

Reacting to the announcement of the Inspector General of Police (IGP), yesterday, the Chairman of the NIA, Kunle Ahmed, welcomed the development, noting that it was a timely and commendable action by the police.

He stressed the importance of enforcing the policy to improve risk management, industry innovation and fostering economic growth. He said: “The enforcement of third-party motor insurance is not only a compliance issue; it is a vital strategy for ensuring financial protection for road accident victims and car owners.

“The third-party insurance policy also provides compensation for property damage and medical care for injured third parties, further contributing to building confidence in the insurance sector.

“The NIA recognises the potential of the enforcement to drive positive change in the insurance industry and the broader economy. With millions of vehicles on Nigerian roads, this move is expected to increase the number of genuinely insured vehicles, reduce the prevalence of fake insurance policies, and create a more robust safety net for motorists and road users alike.”