Road Users Beware! NAICOM, FRSC Team Up To Enforce Compulsory Motor Insurance

Road Users Beware! NAICOM, FRSC Team Up To Enforce Compulsory Motor Insurance

The National Insurance Commission (NAICOM) has partnered with the Federal Road Safety Corps (FRSC) to enhance the enforcement of compulsory third-party motor insurance across Nigeria. This collaboration aims to create a safer and more secure environment for road users nationwide…….READ MORE 

During a recent visit to FRSC headquarters in Abuja, Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, praised Corps Marshal Shehu Muhammed for his dedication to road safety. Mr. Omosehin underscored NAICOM’s critical role in regulating the insurance sector, fostering growth, and ensuring public protection.

The Commissioner emphasized the dual benefits of third-party motor insurance. Financially, victims of damages caused by insured vehicles are eligible for up to ₦3 million in compensation, with unlimited payouts in cases of fatal accidents, depending on the deceased’s value. Non-financial benefits include peace of mind, financial security, and adherence to government regulations.

Mr. Omosehin called for enhanced collaboration between NAICOM and FRSC, noting that while FRSC is primarily responsible for road safety, NAICOM contributes by mitigating risks through regulatory policies.

In response, Corps Marshal Shehu Muhammed reaffirmed FRSC’s commitment to this partnership. He highlighted that enforcing third-party insurance is a core responsibility of the Corps under the National Road Traffic Regulation, mandating every vehicle owner to comply.

It is worth noting that nationwide enforcement of third-party motor insurance by the Nigerian Police began on February 1, 2025. Police Commissioners across the states have directed officers to ensure vehicles without valid insurance certificates are apprehended.

Third-party motor insurance, also known as Act Only insurance, is the most basic form of vehicle insurance required by law. It protects the public from harm caused by insured vehicles, with a minimum annual premium of ₦15,000.

Previously, NAICOM and the Nigerian Police inaugurated a task force dedicated to ensuring compliance with third-party motor insurance policies, reinforcing the government’s commitment to road safety and insurance regulation.