Mr. Babatunde Fajemirokun, Managing Director/CEO of AIICO Insurance Plc
Third-party motor insurance ‘vital safety net for all road users’ — AIICO
[By VICTOR NZE]
Leading underwriter in the country, AIICO has moved to educate motorists and vehicle owners alike on the benefits of the third-party insurance, as it described the policy as ‘ vital safety net.’
This follows an order by the Nigeria police command directing all its formations across the country to commence a nationwide enforcement of the third-party motor insurance compliance by motorists, in line with Section 68 of the Insurance Act 2003.
The enforcement which commenced on February 1, 2025 as announced by the Inspector General of the Nigeria Police Force, Mr Kayode Egbetokun, Monday, further empowers security operatives to impound defaulting vehicles and prosecute their owners without the required valid insurance policy.
According to the police, the clampdown is intended to curb the high number of uninsured vehicles on Nigerian roads and provide victims of accidents with proper compensation.
Weighing in on the latest police clampdown on defaulting policy holders, AIICO Insurance, Tuesday, described the third-party motor insurance as a ‘vital safety net for all road users,’ as it urged vehicle owners to embrace the policy for their own wellbeing.
AIICO Insurance, in a statement jointly approved by its Communications Manager, Mr Ademola Adenekan and Head of Marketing and Communications, Mr Segun Olalandu, highlighted the ‘significant risks’ posed by uninsured vehicles plying Nigerian roads, which the firm noted constitute ‘financial and emotional distress each year due to accidents involving them.’
The statement titled ; ‘Beyond Compliance: How Third-Party Motor Insurance Protects Everyone on the Road,’ further noted that some motorists personally pay for medical bills, car repairs, or other losses after a car accident, adding that ‘if everyone involved had insurance, it would help cover these costs and reduce the financial burden. But that doesn’t always happen. The situation is worse when the person responsible for the accident does not have valid insurance to compensate the victims. This type of insurance is called third-party insurance.’
“In Nigeria, many cars, especially commercial vehicles, do not have valid insurance. This leaves accident victims with no financial support. They are often forced to bear the costs themselves because the responsible driver cannot pay for the damage. With the rising cost of living, the financial impact of road accidents can be devastating, emphasizing the critical need for motorists to comply with insurance regulations and protect themselves and others on the road.
“It is against this backdrop that the Nigerian Police Force has commenced the enforcement of the Third-Party Motor Insurance policy, effective from February 1, 2025. This move is not only a necessity for public safety but also a legal requirement backed by extant laws. Third-party motor insurance is the most basic form of coverage that every vehicle owner should possess. It ensures that in the event of an accident, affected third parties receive due compensation, mitigating financial burdens on individuals and businesses alike.
The foremost insurer assured that being a trusted name in the insurance industry for over 60 years, it remains at the forefront of providing timely and reliable claims settlements, just as it reiterated the importance of securing valid insurance coverage as a safeguard against unforeseen liabilities.
The company also disclosed that it has simplified the process of securing the third-party motor insurance making it ‘easy for vehicle owners to obtain coverage within minutes.’
“AIICO has built a strong reputation for ensuring that genuine claims are processed efficiently, offering relief to policyholders and third parties alike.
“As the enforcement of third-party motor insurance intensifies, AIICO continues to reinforce the importance of securing valid insurance coverage as a safeguard against unforeseen liabilities. To further simplify access to third-party motor insurance, AIICO has made it easy for vehicle owners to obtain coverage within minutes. Anyone can sign up for a valid policy seamlessly via the company’s website, ensuring compliance with the law while securing financial protection against unforeseen accidents.
“The enforcement of this policy is not merely a regulatory requirement but a necessary step toward creating safer roads and a more responsible driving culture.
“By ensuring compliance, authorities are taking a proactive approach to reduce the financial and emotional burdens that accidents impose on innocent third parties. The message is clear: having valid third-party motor insurance is not just a legal obligation, it is a vital safety net for all road users,” the underwriter concluded.
Meanwhile, also reacting to the development, in a press statement released, Monday, and titled; “Understanding the Latest Announcement of the Enforcement of Third-Party Insurance by the Nigeria Police Force,” the sector’s regulatory agency, the National Insurance Commission (NAICOM) welcomed the police’s move to enforce compliance as contained in Section 68 of the Insurance Act 2003.
This is also as NAICOM encouraged vehicle owners in the country to ‘take full advantage of the enforcement announced by the Nigerian Police Force to ensure the safety and protection of lives, properties, and financial compensation for innocent third parties on our roads.’
“The National Insurance Commission welcomes the announcement by the Nigeria Police Force that, effective 1st February 2025, there will be a nationwide enforcement of Third-Party Motor Insurance for all vehicles on Nigerian roads. This move aims to ensure compliance with Section 68 of the Insurance Act 2003.
“Furthermore, the Third-Party Motor Insurance Policy now includes third-party motor insurance coverage for the vehicle if driven to any West African country, as per the ECOWAS Brown Card Scheme.
“A Complaints Bureau is also in place at the National Insurance Commission for resolving any complaints from the public who may be dissatisfied with an insurance company’s service or response to claims,” the NAICOM statement read in parts.
