The Inspector-General of Police (IGP), Kayode Egbetokun, has announced that the enforcement of compulsory third-party vehicle insurance will begin on February 1, 2025.
Egbetokun made the declaration on Friday during a meeting with officials from the National Insurance Commission (NAICOM) at the Force Headquarters in Abuja. The NAICOM delegation, led by its commissioner for insurance, Olusegun Ayo Omosehin, sought the Nigeria Police Force’s (NPF) collaboration to ensure nationwide compliance with the compulsory insurance policy.
In a statement issued by Muyiwa Adejobi, the Force Public Relations Officer, Egbetokun emphasized the importance of third-party insurance for vehicle owners and urged Nigerians to comply with the law.
The statement read, “The IGP affirmed the importance of third-party insurance and announced February 1, 2025, as the commencement date for the enforcement of the relevant laws.
“The IGP further stated that section 68 of the Insurance Act and Section 312 of the 1945 Motor Vehicle (Third Party Insurance) Act mandate that all vehicle owners possess third-party insurance before operating their vehicles on public roads.
“He urged Nigerians to comply with these laws, as violations are punishable by imprisonment, fines, or both.
“The NPF remains steadfast in collaborating with all MDAs and companies in ensuring that the protection of lives and property of all citizens of the Federal Republic of Nigeria remains paramount.”
Third-party motor insurance is a type of coverage where the insurance company agrees to compensate the insured if they are sued or held legally responsible for injuries or damage caused to a third party.
Section 68 of the Insurance Act of 2003 states that “Insurance of third-party property damage: (1) No person shall use or cause or permit any other person to use a motor vehicle on a road unless a liability which he may thereby incur in respect of damage to the property of third parties is insured with an insurer registered under this Act.
“(2) The insurance taken out pursuant to subsection (1) of this section shall cover liability of not less than N1 million.
“(3) The insurance under this section shall be in addition to the liabilities required to be insured under the Motor Vehicle (Third Party) Insurance Act, 1950, and shall be regulated mutatis mutandis by the provisions of the Act.
“(4) A person who contravenes the provisions of this section commits an offence and is liable on conviction to a fine of N250,000 or imprisonment for one year or both.”
