As of February 1, 2025, the Nigeria Police Force (NPF) has begun the nationwide enforcement of third-party motor insurance, making it mandatory for all vehicle owners to have valid coverage. If you drive in Nigeria, here’s what you need to know—and what to do—to stay compliant and avoid penalties.
1. Understand What Third-Party Insurance Covers
Third-party motor insurance is the minimum legal requirement for all vehicles on Nigerian roads. It provides financial protection for:
- Damage to another person’s property or vehicle
- Medical expenses of third parties injured in an accident caused by you
- It does not cover damage to your vehicle
2. Know the Law and the Penalties for Non-Compliance
The law is clear: Section 68 of the Insurance Act and Section 312 of the 1945 Motor Vehicle (Third Party Insurance) Act require all vehicle owners to have third-party insurance before driving on public roads.
Failure to comply means:
- Fines up to ₦250,000
- Imprisonment for up to one year
- Vehicle impoundment
3. How to Get Third-Party Insurance
To avoid legal trouble, get a valid third-party insurance policy from an insurer licensed by the National Insurance Commission (NAICOM). Policies are available from reputable insurance companies like:
✔️ Leadway Assurance
✔️ AIICO Insurance
✔️ AXA Mansard
✔️ Custodian Insurance
The cost for third-party insurance is generally affordable, starting at ₦15,000 per year for private vehicles.
4. What If You Already Have Comprehensive Insurance?
If you have a comprehensive insurance policy, you are already covered! Comprehensive insurance includes third-party coverage, plus protection for your own vehicle in case of accidents, theft, or fire.
5. Be Prepared for Police Checks
- The police are now actively checking for compliance. Always have:
- A valid third-party insurance certificate
- Your vehicle registration documents
- A valid driver’s license
Bottom Line
The enforcement of third-party insurance is not just about penalties—it ensures financial protection for all road users. Stay compliant, get insured today, and drive with peace of mind.
