Avoid Police Hassles: How to Get Genuine Third-Party Vehicle Insurance in Nigeria
Avoid Police Hassles: How to Get Genuine Third-Party Vehicle Insurance in Nigeria
The Nigeria Police Force has commenced full enforcement of the Third-Party Motor Vehicle Insurance policy, effective February 1, 2025. This move, directed by the Inspector General of Police, Kayode Egbetokun, aligns with the Insurance Act and the Motor Vehicle (Third-Party Insurance) Act, which mandate all vehicle owners to have at least third-party insurance coverage.
Third-party insurance is essential for road users as it provides compensation for accident victims, covering damages and medical expenses. Driving, by nature, is unpredictable—one moment you’re cruising, the next, an accident could leave you with hefty repair costs or legal liabilities. Having third-party insurance not only keeps you compliant with the law but also shields you from unexpected financial burdens.
Despite its importance, many Nigerian drivers unknowingly possess fake insurance certificates. The Nigeria Insurers Association revealed that out of 12.12 million registered vehicles, only 2.72 million had valid insurance coverage as of 2021, leaving 9.4 million vehicles uninsured or carrying fake certificates due to unauthorized purchases.
The Federal Government, through the National Insurance Commission (NAICOM), revised motor insurance rates in December 2022, which took effect from January 1, 2023. The new rates include ₦15,000 for private vehicles with ₦3 million Third-Party Property Damage (TPPD) coverage, ₦100,000 for commercial trucks with ₦5 million TPPD coverage, ₦5,000 for tricycles with ₦2 million TPPD coverage, and ₦3,000 for motorcycles with ₦1 million TPPD coverage. Comprehensive motor insurance now requires a minimum premium of 5% of the sum insured, after all rebates and discounts.
To ensure you have genuine third-party insurance, policyholders can verify their insurance status by visiting http://www.askniid.org (https://www.askniid.org) or dialing USSD code *565*11# on any mobile phone.
When selecting a motor insurance policy in Nigeria, consider reputable providers such as Allianz Nigeria, which offers comprehensive insurance with a 15% discount for women and men aged 45 and above; AIICO Insurance, which covers accidents, fire, theft, and third-party liabilities, with an easy online quote comparison; AXA Mansard, which provides affordable coverage for accidents, floods, fire, and theft, with a 5% discount for full-year payments; Leadway Assurance, which offers extensive coverage against fire, theft, and damages; and Custodian Insurance, which covers repair and replacement costs for accidents, fire, and theft, including medical expenses.
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When buying insurance, key factors to consider include coverage options to ensure the policy meets specific needs, premium costs to find an affordable option, the claim settlement process to determine how efficiently claims are processed, and customer service quality for reliable support.
With the police cracking down on uninsured vehicles, having valid third-party insurance is more important than ever. Don’t wait until you’re stopped at a checkpoint—secure your coverage today and stay compliant with the law.
