The official Flag off of E-Third Party Motor Insurance will take place tomorrow Thursday 5th of August 2021 at the Staff Development Centre at Abere by His Excellency, Governor Gboyega Oyetola.

Third Party Motor Insurance is based on Section 68 (1) of Insurance Act 2003, legislates that “no person shall use or permit any other person to use a motor vehicle on a road unless a liability which he may thereby incur in respect of damage to the property of the third parties and or injury caused to third parties is insured with an Insurer registered under this Act”.

Sub-section 4 of the Act says that “a person who contravenes the provisions of this section commits an offence and liable on conviction to a fine of N250,000.00 or imprisonment for one year or both”.

By virtue of the Act, a vehicle is not road worthy without a minimum Third Party Motor Insurance cover. Though vehicle owners are aware that Third Party Insurance is compulsory, majority still possess fake insurance mainly to escape from law enforcement agents; thereby contravening the Law.

Available statistics from Nigeria insurers Association (NIA) shows that as at end of 2018, less than 30% of Nigerian vehicles are insured with attendant loss of revenue and liabilities that are not met.


With the gradual increase of number of motor vehicle on the roads, the number of accidents also began to increase. Meanwhile, the injured road users and damaged properties, through the fault of motorists were not able to obtain compensation because the negligent motorists were either not having sufficient resources to pay for damages or not insured by any insurance company. No doubt, no government will fold her hands to allow disorderliness to be the order and also allow some negligent individuals to hurt her innocent citizens.

These factors led to the introduction of the Third Party Motor Insurance Ordinance (1945) and as amended by the Road Traffic Act (1972) as enumerated above.

Part VI of the Road Traffic Act (1972)/Road Traffic Act (1974) states:
Subject to the provision of this part of the Act, it shall not be lawful for a person to use or to permit any other person to use a motor vehicle on a road unless there is in force in relation to the use of the vehicle by that person or that other person as the case maybe, such a policy of insurance or such a security in respect of third party risks as complies with the requirements of this part of this act; and if a person acts in contravention of this section, he shall be guilty of an offence (s.143(i). The penalty is as already mentioned above.
This policy must be issued by an authorized insurer, that is, a person or body of persons carrying on motor vehicle insurance business in Nigeria.


The motor Insurance Third Party will indemnify for:

□ Bodily injury
□ Emergency treatment (Medical Expenses)
□ Damage to Third Party Property
□ Policy holder for driving car not belonging to him
□ Anyone driving on the policy holder’s order
□ Passengers
□ Employer/Partner
□ Legal costs



• It will eliminate fake Third Party Insurance.
▪ The vehicle owners shall be compliant with the Insurance Act No1, 2003 on compulsory Third Party Motor Insurance.
▪ Payment of genuine claims is guaranteed.
▪ Vehicle owners shall be able to fulfill the legal responsibilities to third party/other road users.
▪ Fake Motor insurance is a multiple loss to the society as the revenue which would have gone to the genuine Insurance companies find their ways into private pockets of some unscrupulous individuals in our society.
▪ It will reduce some of the social ills in our society.

War Against Fake Motor Insurance

The issue of fake motor insurance has been a source of concern to the government, the insurance industry, law enforcement agents and road users. To eliminate fake motor insurance papers, National Insurance Commission (NAICOM) has been raiding Motor Licensing/VIO offices in some selected cities and it has directed all Insurance companies to withdraw their certificates of Insurance from licensing offices nationwide.

Moreover, the Insurance industry, in collaboration with other stakeholders, inaugurated the Nigerian Insurance Industry Database (NIID), the objective of which are to phase out fake insurance papers and allow only genuine insurance to thrive in the country. This makes it easier for the Law Enforcement Agents to confirm the authenticity of any vehicle insurance. Any mobile handset that can browse can be used to confirm insurance status of any vehicle. The 4 simple steps to check the insurance status are:
Log-on to

How to make claim under Osun State E-Third Party Insurance Scheme
The accident or loss must involve third party before a valid claim can be made. The insured shall:

✔ Report any accident involving a third party to police
✔ Take photographs of the accident scene and damaged vehicles/property of those involved in the accidents (if only damage)
✔ Report the accident to the nearest MLO/the Brokers (The address and contact details of the Brokers shall be made available).
✔ Submit the completed claim form together with
▪ Police Report
▪ Photographs of the accident scene and damaged property.