Third Party Insurance is not just a legal requirement in Nigeria; it is an essential safeguard for motorists and accident victims. Governed by the Motor Vehicles (Third Party Insurance) Act and other relevant laws, it ensures financial protection for third parties who suffer injuries, fatalities, or property damage from road accidents.
In 2025, the Nigerian Police announced a nationwide enforcement drive, emphasizing compliance with Third-Party Insurance laws. This move aims to reduce the number of uninsured vehicles on the roads and enhance safety standards.
What is Third Party Insurance?
Third Party Insurance is the minimum motor safety measure required of motorists by law in Nigeria. It provides financial coverage to third-party victims in the following areas:
- Bodily Injury or Death: Compensation for injuries or loss of life caused by the insured vehicle.
- Property Damage: Financial protection for damages inflicted on third-party property.
This insurance allows victims to receive compensation without undue legal battles, reducing financial burdens.
Legal Basis for Third Party Insurance
The Motor Vehicles (Third Party Insurance) Act[1] and Section 68 of the Nigerian Insurance Act (2003)[2] mandate that all vehicles operating on public roads must have valid Third Party Insurance.
Penalties for Non-Compliance:
- Fines: Offenders face financial penalties.
- Vehicle Impoundment: Uninsured vehicles may be confiscated.
- Criminal Prosecution: Defaulters may face legal actions and possible jail time.
Recent Enforcement Directive by the Nigerian Police
The Nigerian Police’s enforcement campaign, effective February 1, 2025, introduces stricter measures to ensure compliance. Key components include:
- Routine Document Checks: Officers will inspect insurance certificates at checkpoints.
- Real-Time Verification: Automated systems to identify fake or expired policies.
- Penalties for Defaulters: Defaulters risk fines, impounding of vehicles, or prosecution.
This initiative underscores the government’s commitment to road safety and financial protection for accident victims.
How to Get Third Party Insurance
Obtaining Third Party vehicle insurance is simple:
- Choose a licensed insurer regulated by the National Insurance Commission (NAICOM).
- Provide required vehicle details, including registration documents.
- Pay the premium (typically ₦5,000 to ₦15,000 annually).
- Collect and store your insurance certificate for verification.
Benefits of Third Party Insurance
- Compliance: Securing insurance helps avoid fines and ensures your vehicle is roadworthy.
- Financial Security: Protect third parties and reduce your liability in accidents.
- Peace of Mind: Allows you to drive confidently, knowing you meet legal and ethical obligations.
Conclusion
The Nigerian Police’s renewed enforcement of Third Party Insurance laws is a significant step toward ensuring accountability and road safety. Beyond compliance, this insurance ensures fairness and financial protection for accident victims.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. If you need legal advice on a specific road traffic incident or other concerns, please contact a qualified attorney for personalized assistance.
Subscribe! follow!! share!!!
Has this article been of help? Why not consider subscribing to our mailing list us for more.
Do not forget to share, Follow our pages on Facebook and Instagram and also subscribe to our WhatsApp Channel
[1] Motor Vehicles (Third Party Insurance) Act, Cap M25, Laws of the Federation of Nigeria, 2004.
[2] Insurance Act, Cap I3, Laws of the Federation of Nigeria, 2004.