Insurance firm AIICO has said that third-party motor insurance is more than a legal obligation but a safety net for all road users.
This was disclosed amid the ongoing nationwide enforcement of third-party motor insurance by the police. The enforcement commenced on Feb 1.
Third-party motor insurance is the minimum motor safety measure required of motorists by law in Nigeria. It provides financial coverage to third-party victims in case of bodily harm or death and property damage.
According to a statement from AIICO, uninsured vehicles on Nigerian roads pose significant risks, with countless road users facing financial and emotional distress each year due to accidents involving vehicles without valid insurance.
It read, “Sometimes, people have to pay for medical bills, car repairs, or other losses after a car accident. If everyone involved had insurance, it would help cover these costs and reduce the financial burden. But that doesn’t always happen. The situation is worse when the person responsible for the accident does not have valid insurance to compensate the victims. This type of insurance is called third-party insurance.
“In Nigeria, many cars, especially commercial vehicles, do not have valid insurance. This leaves accident victims with no financial support. They are often forced to bear the costs themselves because the responsible driver cannot pay for the damage. With the rising cost of living, the financial impact of road accidents can be devastating, emphasising the critical need for motorists to comply with insurance regulations and protect themselves and others on the road.”
AIICO Insurance Plc added that it has provided timely and reliable claims settlements.
It stated, “The company has built a strong reputation for ensuring that genuine claims are processed efficiently, offering relief to policyholders and third parties alike. As the enforcement of third-party motor insurance intensifies, AIICO continues to reinforce the importance of securing valid insurance coverage as a safeguard against unforeseen liabilities.
“To further simplify access to third-party motor insurance, AIICO has made it easy for vehicle owners to obtain coverage within minutes. Anyone can sign up for a valid policy seamlessly via the company’s website, ensuring compliance with the law while securing financial protection against unforeseen accidents.
“The enforcement of this policy is not merely a regulatory requirement but a necessary step toward creating safer roads and a more responsible driving culture. By ensuring compliance, authorities are taking a proactive approach to reduce the financial and emotional burdens that accidents impose on innocent third parties. The message is clear: having valid third-party motor insurance is not just a legal obligation; it is a vital safety net for all road users.”
