Less Than 25% of Vehicles in Nigeria Have Valid Motor Insurance
By Patience Ikpeme
The National Insurance Commission (NAICOM) has revealed that less than a quarter of vehicles in Nigeria possess valid motor insurance.
This startling revelation was made by the Commissioner for Insurance and Chief Executive Officer (CEO) of the National Insurance Commission (NAICOM), Mr. Olusegun Ayo Omosehin, during a courtesy visit to the Inspector General of Police, Dr. Kayode Adeolu Egbetokun.
Mr. Omosehin’s visit aimed to seek the collaboration of the Nigerian Police Force (NPF) to ensure the enforcement of compulsory third-party motor insurance, which is mandated by law.
He said that it is very important to have valid motor insurance for every vehicle on the road, and he pointed out that it is against the law to drive without it.
The CFI also outlined several key updates in the insurance sector. According to him, in 2023, the NAICOM upgraded the third-party motor insurance cover to include the ECOWAS Brown card. This addition allows insured vehicles to travel across the West African sub-region with valid insurance and claims benefits attached to third-party insurance have been increased to N3 million, providing better coverage for insured parties.
To further these initiatives, Mr. Omosehin stressed the importance of digital platforms to verify the validity of vehicle insurance. He pointed out that such a system is already in use by the Lagos State government, ensuring that vehicles on the road are properly insured.
In addition, the Commissioner requested the formation of a team to work with NAICOM on enforcement actions. He asserted that successful enforcement would be a significant milestone for Nigeria.
Responding to the Commissioner’s request, the Inspector General of Police, Dr. Egbetokun, assured the Insurance boss full support from the Nigerian Police Force. He announced the establishment of a team led by the Deputy Inspector General of Police (Operations) to oversee the enforcement of compulsory insurance.
This collaboration between NAICOM and the NPF is expected to significantly boost the enforcement of motor insurance laws in Nigeria, ensuring that more vehicles on the road are properly insured and thus enhancing road safety and insurance compliance nationwide.
