MOTOR VEHICLES (THIRD PARTY INSURANCE) ACT

An Act requires all vehicles on Nigerian roads to have compulsory third-party insurance for accident victims' compensation. It targets vehicle owners, insurance companies, and enforcement agencies. This ensures victims receive financial support from insurers.

What Is This Policy?

An Act making third party motor vehicle insurance compulsory for all vehicles used on Nigerian roads, protecting road accident victims by ensuring a source of compensation from the insuring party.

Who Does It Target?

All vehicle owners using public roads Insurance companies providing motor insurance Nigeria Police Force and FRSC enforcing insurance compliance Road accident victims seeking compensation

What Does It Aim to Achieve?

Ensure that persons injured or killed in road accidents have access to compensation from the vehicle owner's insurer, reducing the burden on victims and their families.

Key Features

Compulsory Insurance: Every vehicle used on a Nigerian road must hold at minimum a valid third party motor insurance certificate. Minimum Coverage: Third party insurance must cover bodily injury and death caused to third parties. Certificate Display: A current insurance certificate must be carried in the vehicle at all times. Penalties: Driving without insurance attracts fines and impoundment of the vehicle.

Current Status

Rollout Stage: Active Coverage: Nationwide, all motorists Beneficiaries: Road accident victims; road users Funding: Insurance premiums

How to Access

Purchase third party motor insurance from any NAICOM-licensed insurer Carry the insurance certificate in the vehicle Present at police checkpoints when required Application method: Purchase from any licensed motor insurer or insurance broker.

Important Terms

Third party motor insurance covers the insured's liability to others, not the insured's own vehicle Compensation claims against the insurer must be filed promptly after an accident Fake insurance certificates are a criminal offence for both the seller and holder

Official Resources

Website: https://www.naicom.gov.ng Contact: National Insurance Commission (NAICOM)

Legal Framework

Enacted under the legislative powers of the National Assembly vested by Section 4 of the 1999 Constitution. Operates alongside the Road Traffic Act, the Federal Road Safety Corps Establishment Act 2007, the Insurance Act 2003, the National Insurance Commission Act 1997, and the National Road Traffic Regulations.