All you need to know about third-party insurance as police begin enforcement

• The Nigeria Police Force has commenced nationwide enforcement of third-party centrifugal security
• According to Section 68 of the Insurance Act, conveyance owners are required to person third-party security earlier operating their vehicles connected nationalist roads successful Nigeria
• The Force's nationalist relations officer, Olumuyiwa Adejobi, has outlined the imaginable punishment for offenders

Legit.ng writer Adekunle Dada has implicit 7 years of acquisition covering metro, authorities policy, and planetary events

FCT, Abuja - Vehicle owners successful Nigeria are expected to person the Third-Party Motor Insurance Policy pursuing the nationwide enforcement by the Nigeria Police Force (NPF) effectual February 1, 2025.

The NPF explained that the inaugural aims to reenforce roadworthy information measures.

Third-Party centrifugal security offers fiscal sum to nonaccomplishment oregon harm caused to a third-party idiosyncratic oregon property. Photo credit: Stock photo
Source: Getty Images

The Force's nationalist relations officer, Olumuyiwa Adejobi, said the policy volition guarantee vehicle owners comply with the stipulated security requirements to support themselves and others connected the road.

What is third-party security policy?

Third-Party Motor Insurance is the ineligible minimum level of centrifugal security screen immoderate centrifugal conveyance proprietor plying the Nigerian roadworthy is required to have.

According to Custodian Insurance Plc, it is 1 of the compulsory security policies successful Nigeria.

The argumentation takes attraction of the harm caused by the insured to the Third Party’s spot oregon vehicle.

It is besides liable for the Third Party’s aesculapian expenses (if any) successful the lawsuit of an accident, erstwhile the policyholder is astatine fault.

As the sanction implies, the argumentation focuses connected compensating the third-party for damages caused by the policyholder and not the insured’s car.

What does the instrumentality say?

Section 68 of the Insurance Act and Section 312 of the 1945 Motor Vehicle (Third Party Insurance) Act, said each conveyance owners are required to person third-party security earlier operating their vehicles connected nationalist roads.

According to the Act, non-compliance can effect successful penalties, including fines, imprisonment, oregon both.

Section 68 of the Insurance Act of 2003 states that:

“(1) No idiosyncratic shall usage oregon origin oregon licence immoderate different idiosyncratic to usage a centrifugal conveyance connected a roadworthy unless a liability which helium whitethorn thereby incur successful respect of harm to the spot of 3rd parties is insured with an insurer registered nether this Act."

Police accidental offenders volition look fines oregon penalties oregon both, arsenic mandated by applicable extant laws. Photo credit: Nigeria Police Force
Source: Facebook

Failure to comply

The Police spokesperson, Adejobi warned that the nonaccomplishment of conveyance owners and operators to comply with the caller directive volition effect successful strict enforcement actions.

The Police spokesperson said the punishment includes fines oregon penalties oregon both, arsenic mandated by applicable extant laws.

However, Nigerians who person broad security policies for their vehicles person thing to fearfulness astir the constabulary enforcement exercise.

This is due to the fact that the broad security argumentation possesses some the third-party-vehicle security sum and the full security bundle for an insurer’s vehicle.

Section 68, subsection 4 of the Insurance Act of 2003, conveyance owners who contravene the provisions are liable connected condemnation to a good of N250,000 oregon imprisonment for 1 twelvemonth oregon both.

Police acceptable fines for offenders of 3rd-party conveyance insurance

Legit.ng earlier reported that the constabulary commenced the enforcement of the Mandatory Third-Party Vehicle Insurance, effectual February 1st, 2025.

The Police explained that non-compliant conveyance owners volition look strict penalties, including fines.

Vehicle owners were urged to rapidly unafraid valid security to debar penalties arsenic constabulary are empowered to behaviour checks and enforce the instrumentality nationwide.

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Source: Legit.ng