Nigeria: NAICOM and FRSC Strengthen Partnership for Third-Party Motor Insurance Enforcement

The National Insurance Commission (NAICOM) and the Federal Road Safety Corps (FRSC) have reinforced their collaboration to ensure the effective enforcement of compulsory third-party motor insurance across Nigeria.

In a statement released on Friday, NAICOM emphasized that this partnership is aimed at enhancing road safety and ensuring a more secure environment for all road users.

This development follows the nationwide enforcement of third-party motor insurance by the Nigeria Police, which began on February 1, 2025.

NAICOM Commends FRSC’s Role in Road Safety

During a working visit to the FRSC headquarters in Abuja, the Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, commended the Corps Marshal, Shehu Muhammed, for his commitment to road safety in Nigeria.

Omosehin emphasized the significance of third-party motor insurance, outlining both financial and non-financial benefits:

• Financial Benefits: Victims of accidents involving insured vehicles are entitled to N3 million in compensation for damages, while compensation for fatalities is unlimited, based on the value of the deceased’s life.
• Non-Financial Benefits: These include financial security, peace of mind, and confidence in compliance with government regulations.

“Ensuring road safety is the primary duty of the FRSC, but NAICOM also plays a crucial role in mitigating risk through effective policy regulations,” Omosehin stated, calling for enhanced collaboration between both agencies.

FRSC Reaffirms Commitment to Insurance Enforcement

In response, Corps Marshal Shehu Muhammed assured NAICOM of FRSC’s commitment to the enforcement of third-party motor insurance. He emphasized that third-party insurance is a core part of the National Road Traffic Regulation, making it mandatory for all vehicle owners.

Since the implementation of compulsory third-party insurance enforcement, stakeholders in the insurance and transport sectors have continued to highlight its benefits for motorists and the industry, reinforcing the need for compliance and awareness among road users.