NAICOM backs enforcement of third-party motor insurance coverage

The Nationwide Insurance coverage Fee has expressed assist for the choice of the Nigeria Police Pressure to start enforcement of the third-party motor insurance coverage coverage from February 1.

In an announcement on Wednesday, the insurance coverage business regulator stated the transfer would guarantee compliance with Part 68 of the Insurance coverage Act 2003.

The Nigeria Police Pressure, in an announcement final Friday signed by Pressure Public Relations Officer Olumuyiwa Adejobi, introduced the graduation of the enforcement nationwide.

NAICOM within the contemporary assertion stated, “The Nationwide Insurance coverage Fee welcomes the announcement by the Nigeria Police Pressure that with impact from 1st February 2025, there might be a nationwide enforcement of the Third Party Motor Insurance coverage for all autos on Nigerian roads. This transfer goals to make sure compliance with Part 68 of the Insurance coverage Act 2003.”

The Third Party Motor Insurance coverage is the minimal protection compulsorily required by regulation for any automobile on our roads, whereas Complete Motor Insurance coverage is non-compulsory and really helpful.

“⁠The essence of each automobile on the highway having third-party motor insurance coverage is to facilitate the protection of others and make sure the monetary restoration/compensation for damages and/or accidents or lack of lives within the occasion of accidents lined by the coverage. The Third Party Motor Insurance coverage Coverage will be procured from or by means of solely licensed insurance coverage entities authorised by the Nationwide Insurance coverage Fee to transact motor insurance coverage enterprise in Nigeria. The third-party motor insurance coverage coverage is offered for a premium of N15,000 per 12 months to non-public automotive homeowners, whereas the premiums for industrial autos differ relying on the kind of automobile.

“⁠The Third Party Motor Insurance coverage Coverage provides the policyholders the restrict of N3m to restore or exchange the property of the harmless third get together broken throughout an accident. Additionally, it provides the policyholders entry to restricted medical look after any injured third get together on account of the accident. As well as, it supplies monetary compensation to the household of the deceased harmless third get together within the occasion of loss of life. Moreover, the Third Party Motor Insurance coverage Coverage now contains third-party motor insurance coverage cowl for the automobile if it was pushed to any West African nation primarily based on the protocol of the ECOWAS Brown Card Scheme,” NAICOM added within the assertion.

The regulator additionally famous that it has a complaints bureau in place to make sure the decision of all complaints that will emanate from members of the general public who could also be dissatisfied with an insurance coverage firm’s service or response to claims.

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