How To Get Genuine Third-Party Vehicle Insurance And Avoid Police Penalties

The Nigeria Police Force (NPF), on Saturday February 1, 2025, begun the full enforcement of the Third-Party Motor Vehicle Insurance policy across the country.

The directive, issued by the Inspector General of Police, IGP Kayode Egbetokun, aligns with the Insurance Act and the Motor Vehicle (Third-Party Insurance) Act, which mandate that all vehicle owners must have at least third-party insurance coverage.

The Police said defaulters risk penalties like fine.

The enforcement aims to curb the rising number of uninsured and fake insurance certificates on Nigerian roads, which currently stands at 9.4 million. According to the Nigeria Insurers Association (NIA), only 2.72 million vehicles had valid insurance as of February 2021, highlighting the prevalence of fraudulent insurance purchases.

Why Third-Party Insurance Matters?

Third-party insurance provides financial protection to road users by covering damages and medical expenses for victims involved in accidents caused by the policyholder. This ensures that affected individuals receive adequate compensation without out-of-pocket expenses for the at-fault driver.

Beyond legal compliance, having genuine third-party insurance shields motorists from unexpected financial burdens. Whether it’s damage to another person’s vehicle or medical bills resulting from an accident, this policy offers essential coverage, helping drivers avoid legal and financial troubles.

Revised Insurance Premium Rates:

To further regulate the industry, the National Insurance Commission (NAICOM) reviewed insurance premium rates, which took effect on January 1, 2023. The new rates are as follows:

– Private vehicles: ₦15,000 premium for a ₦3 million Third-Party Property Damage (TPPD) limit (previously ₦5,000 for ₦1 million coverage).

– Owner goods vehicles: ₦20,000 premium for a ₦5 million claim limit.

– Staff buses: ₦20,000 premium for a ₦3 million claim limit.

– Commercial trucks/general cartage: ₦100,000 premium for a ₦5 million TPPD limit.

– Tricycles (Keke): ₦5,000 for a ₦2 million TPPD limit.

– Motorcycles: ₦3,000 for a ₦1 million TPPD limit.

For comprehensive motor insurance, the premium must be at least 5% of the insured vehicle’s value after deductions for rebates and discounts.

How to Verify Your Insurance Policy?

Motorists can confirm the authenticity of their insurance coverage through the Nigerian Insurance Industry Database (NIID) by:

1. Visiting (www.askniid.org)

2. Dialing *565*11# on any mobile phone, with or without internet access.

Where to Get Reliable Third-Party Insurance in Nigeria

To avoid falling victim to fraudulent agents, motorists should obtain their insurance from reputable providers.

Some top insurers offering legitimate motor insurance policies include:

– Allianz Nigeria – Provides comprehensive car insurance with perks such as a 15% discount for women and men aged 45 and above and rewards for safe driving.

– AIICO Insurance – Offers comprehensive auto insurance covering accidents, fire, theft, and third-party liabilities, with an easy online quote comparison feature.

– AXA Mansard – Provides affordable car insurance covering accidents, floods, fire, and theft, with a 5% discount for full-year payments.

– Leadway Assurance– Delivers comprehensive auto insurance with extensive protection against fire, theft, and vehicle damage.

– Custodian Insurance – Covers repairs, replacements, medical expenses, and other damages resulting from accidents, fire, or theft.

Choosing the Right Insurance Policy:

Before purchasing a policy, consider these key factors:

– Coverage Options: Ensure the policy aligns with your specific needs and offers necessary add-ons.

– Premium Costs: Compare rates to find a budget-friendly option.

– Claim Settlement Process: Research the company’s track record for handling claims efficiently.

– Customer Service: Evaluate responsiveness and support quality.

With the police stepping up enforcement of third-party insurance laws, motorists must ensure they have valid coverage to avoid penalties and unnecessary confrontations with law enforcement. Beyond compliance, securing genuine third-party vehicle insurance provides peace of mind, financial protection, and a safety net in case of unexpected road incidents.

To stay compliant and avoid police penalties, motorists should verify their insurance status and purchase policies only from accredited providers.