As Nigeria tightens enforcement of third-party motor insurance, concerns are growing over alleged police extortion of defaulters, while regulators intensify efforts to ensure compliance.

Industry experts emphasize that motor insurance is not just a legal requirement but a crucial safety net for all road users.

To strengthen compliance, the National Insurance Commission (NAICOM) has partnered with the Federal Road Safety Corps (FRSC) and other stakeholders to curb non-compliance and ensure timely settlement of genuine claims.

Since the enforcement of the policy by NAICOM and the Nigerian Police Force (NPF), many motorists have expressed outrage over the methods used by law enforcement officers. Some have accused the police of heavy-handedness, while others question their legitimacy in verifying third-party insurance documents.

Despite the legal backing, many commercial and private drivers remain unaware of the policy’s purpose and benefits, leading to widespread resistance and confrontations between motorists and police officers in major Nigerian cities.

A Daily Sun investigation revealed that in Lagos and other locations, traffic congestion has worsened due to prolonged standoffs between drivers and enforcement officers. Many officers reportedly lack a clear understanding of the difference between Comprehensive and Third-Party Motor Insurance, highlighting the need for proper training before full enforcement.

NAICOM’s Position and FRSC’s Role

NAICOM’s Commissioner for Insurance, Mr. Olusegun Omosehin, has called on insurance operators to intensify public awareness campaigns. However, many argue that these efforts have not been adequate, leaving motorists frustrated.

Despite the complaints, NAICOM has reaffirmed its support for the NPF, pledging to provide training and resources for a more efficient enforcement process. The goal is to enhance road safety, promote compliance, and protect road users while ensuring that insurance policies serve their intended purpose.

During a visit to the FRSC headquarters in Abuja, Omosehin commended Corps Marshal Shehu Mohammed for his dedication to road safety and stressed the importance of insurance in mitigating risks. He outlined the financial and non-financial benefits of third-party insurance:

• Financial benefits: Victims of damage caused by insured vehicles are entitled to ₦3 million, while in the event of death, compensation is unlimited, depending on the deceased’s value.
• Non-financial benefits: Includes peace of mind, financial security, and compliance with government regulations.

Omosehin emphasized that road safety is primarily the FRSC’s responsibility, but NAICOM plays a supporting role by providing risk-mitigating policies.

Despite these assurances, critics question whether law enforcement officers are adequately prepared to enforce the policy without abusing their powers.

Many motorists have accused the police of using the enforcement drive as an opportunity for extortion, forcing them to either pay bribes or risk their vehicles being impounded. Some drivers reported that even those with valid comprehensive insurance policies were wrongly penalized due to officers’ lack of understanding of different insurance types.

In an interview, Mr. Segun Bankole, Chairman of the Corporate Affairs Committee of the Nigerian Insurers Association (CAMCONIA), acknowledged the confusion. He called for urgent training of enforcement officers and better public awareness to prevent unnecessary conflicts between motorists and the police.

Meanwhile, AIICO Insurance Plc, a key player in the industry, stressed that third-party motor insurance is essential for road safety and financial security. The company noted that thousands of Nigerians suffer financial and emotional distress yearly due to accidents involving uninsured vehicles.

Experts argue that enforcement should be gradual and properly communicated to avoid unnecessary hardship. Some suggested that rather than penalizing defaulters immediately, enforcement agencies should direct them to nearby insurance providers to obtain valid coverage.

Security analyst Mr. Ojo Kennedy also proposed that insurance education be integrated into driving schools, FRSC programs, and vehicle registration processes, ensuring that all drivers understand the requirements before getting behind the wheel.

The enforcement of third-party motor insurance is a necessary step toward road safety, but its implementation must be transparent, fair, and well-communicated. Addressing officers’ training gaps, improving public awareness, and eliminating corrupt practices will be key to ensuring that this policy achieves its intended goals.