NIA welcomes third-party motor insurance coverage enforcement

The Nigerian Insurers Affiliation has applauded the Inspector-Normal of Police and the Nigeria Police Drive for the current announcement of a nationwide enforcement of the Third-Party Motor Insurance coverage Coverage, efficient February 1, 2025.

This initiative aligns with the provisions of Part 68 of the Insurance coverage Act 2003. It’s a vital step in the direction of strengthening compliance, guaranteeing street security, and defending motorists and third events on Nigerian roads.

Reacting to the announcement, the Chairman of the NIA, Mr. Kunle Ahmed, famous that it was a well timed and commendable motion by the Nigeria Police Drive. He emphasised the significance of implementing the coverage to enhance threat administration, business innovation, and fostering financial development.

He mentioned, “The enforcement of third-party motor insurance coverage just isn’t solely a compliance situation; it’s a very important technique for guaranteeing monetary safety for victims of street accidents and automotive homeowners. The third-party insurance coverage coverage additionally offers compensation for property harm and medical take care of injured third events, which additional contributes to constructing confidence within the insurance coverage sector.

“The NIA recognises the immense potential of this enforcement to drive optimistic change within the insurance coverage business and the broader economic system. With tens of millions of autos on Nigerian roads, this transfer is predicted to extend the variety of genuinely insured autos, cut back the prevalence of pretend insurance coverage insurance policies, and create a extra strong security web for motorists and street customers alike,” he remarked.

Ahmed defined that the initiative additionally aligns along with his administration’s agenda to prioritise rising consciousness of the advantages of insurance coverage, fostering innovation throughout the business, and enhancing partnerships with key stakeholders to strengthen Nigeria’s insurance coverage ecosystem.

“Because the enforcement takes impact, I wish to guarantee the insuring public and different stakeholders that our members are absolutely ready to supply seamless entry to third-party motor insurance coverage insurance policies by means of authorised channels, guaranteeing that each Nigerian motorist can defend their threat and adjust to the regulation. We’ll work intently with our members to make sure environment friendly service supply, progressive merchandise, and improved buyer experiences,” Ahmed asserted.

The NIA believes this enforcement is a game-changer for the business, as it is going to encourage better public belief in insurance coverage, cut back uninsured dangers, and stimulate financial exercise. The NIA has additionally arrange initiatives to collaborate with the Nationwide Insurance coverage Fee in rising public consciousness and sensitisation efforts to coach Nigerians about the advantages of real motor insurance coverage insurance policies.

The NIA calls on car homeowners nationwide to take full benefit of this chance by acquiring their third-party motor insurance coverage insurance policies by means of licensed and authorised insurers. We are able to construct a safer, extra accountable, and better-protected street.