The president of the Nigerian Association of Road Transport Owners, Yusuf Othman, has said that members of his association are not afraid of the enforcement of third-party insurance by the police but welcome the development.
Othman made this assertion during an exclusive chat with The PUNCH.
The Nigeria Police Force commenced the enforcement of the third-party motor insurance policy nationwide on Saturday, February 1, 2025.
Othman said, “I don’t see any responsible person or renewal agency that would renew documents without including the third-party motor insurance; they go hand in hand.
“Therefore, any vehicle that doesn’t have valid papers doesn’t have third-party insurance. If you have valid papers, then you will have a third-party insurance policy. Most of our members are compliant, and we are not afraid of this enforcement. In fact, we want the enforcement because it is a source of revenue for the government so that they will use the money to do something meaningful for us.”
The decision of the police to commence enforcement of the third-party motor insurance policy has been hailed by the industry’s stakeholders, who pointed out that it would deepen insurance penetration.
Commenting on the development, President/Chairman, Governing Board, Nigerian Council of Registered Insurance Brokers, Bàbàtunde Oguntade, said, “The IGP is for the federation, and when he gives an instruction, it goes to the commissioners. They have an investment in the area and others, like mortgages and microfinance banks. I’m sure this NPF will not fail because they will ensure that they drive the market, and you know NPF cannot eat everything.
The principle of insurance is in the sharing, so this industry will benefit from whatever initiatives the IGP is thinking of.
“The third-party insurance is a national thing, and it’s even cross-border now because it has the ECOWAS element there. If people really knew the benefit of what N15,000 was doing for them, nobody would need to chase them. I’m sure we are going to have improvements in that area.”
The Nigerian Insurers Association also applauded the police for the move. In a statement, the body noted that it aligns with the provisions of Section 68 of the Insurance Act 2003 and would strengthen compliance, ensure road safety, and protect motorists and third parties on Nigerian roads.
Chairman of the NIA, Mr. Kunle Ahmed, noted that it was a timely and commendable action by the Nigeria Police Force.
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 victims of road accidents and car owners. The third-party insurance policy also provides compensation for property damage and medical care for injured third parties, which further contributes to building confidence in the insurance sector.
“The NIA recognises the immense potential of this 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.”
