Ibadan, Abeokuta, Ilorin: How These Cities View Third-Party Insurance Differently

Amid various public opinions, the Police Commands in Oyo, Ogun, and Kwara have begun enforcing the third-party vehicle insurance policy directive.

According to a report by the News Agency of Nigeria (NAN) on Wednesday, the enforcement commenced officially across the three states on February 1, as instructed by Inspector-General of Police (I-G) Kayode Egbetokun.

The enforcement was for the benefit of motorists, according to Ayodele Sonubi, the Oyo State Commissioner of Police (CP), who led and monitored compliance efforts.

The CP stated that Area Commanders in the state duplicated this in their own jurisdictions and coverage areas.

According to Sonubi, the enforcement was one of several methods used to guarantee that vehicles were roadworthy and had proper vehicle documentation.

He stated that insurance companies aimed to lessen the burden on motorists with third-party insurance policies whenever they were involved in accidents.

According to Sonubi, enforcement will be an ongoing activity, and he called on residents—especially car owners in the state—to refresh all pertinent documents in order to prevent penalties.

In the meantime, a driver by the name of Mr. Kunle Adeyemi remarked that it was unfair for the government to require vehicle owners to secure third-party vehicle insurance given the current economic difficulties.

Adeyemi mentioned that he would have to fight to obtain the insurance in order to avoid unnecessary penalties, and noted that all his other vehicle documents were still valid.

A lawyer from Ibadan, Mr. David Fatola, criticized the I-G for the directive, asserting that any policy lacking a constitutional basis was null and void.

He claims that some individuals in specific roles in Nigeria are complicating life for the populace.

He did, however, convey hope that there would be a legal challenge to the directive and that the I-G would certainly be defeated in this fight.

“I comprehend that the decision had already begun to create chaos in Akwa Ibom and several other states of the federation.

“Exactly this was done by the administration of former President Muhammadu Buhari when it sought to illegally extend the tenure of the then I-G, a move that faced strong resistance from Nigerians.

“After that, the court ruled against them, and I-G Idris was eventually dropped,” Fatola said.

He, however, indicated that he had not observed the police enforcing the directive anywhere in Oyo State.

Mr. Samson Afuye, who owns a private vehicle, voiced his sorrow over the Federal Government (FG) being able to inflict further suffering on Nigerians through the police.

He claims that Nigerians are just trying to get by in the economy, which is difficult already.

A Lagos-based insurance expert, Mr. Toni Amuno, pointed out that while the directive was beneficial for the people, the prevailing economic conditions necessitated greater caution.

He recommended allowing Nigerians more time to achieve economic balance before implementing the policy.

According to insurance broker Mr. Ibrahim Osigwe, motorists who hold comprehensive insurance policies also require the third-party policy as per the I-G’s directive.

Osigwe states that for car owners, comprehensive insurance is ideal since it protects both the owner and the other party involved.

He, on the other hand, stated that the owner would receive payment for the claim.

Ms. Modupe Adeloye, a motorist, stated that motorists have been acquiring the third-party policy with minimal or no advantages for the policyholder.

In her view, the vehicle insurance law is not very solid.

She noted, though, that with the third-party policy now acquired for N15,000, it was possible that insurance companies would be able to settle claims promptly.

Mrs. Mahmudat Yussuf, a legal professional and the Oyo State Lead of the Nigerian Bar Association (NBA) Women Forum, viewed the enforced policy as a significant and positive advancement.

Yussuf noted that vehicle owners were mandated by Section 3 of the Motor Vehicles (Third-Party Insurance) Act to secure third-party insurance policies.

According to her, disregarding the law turns it into an offence that can incur a fine, a conviction, or both.

She stated that the policy is not new and only requires appropriate amendments.

Yussuf further underscored that Section 20(3) of the Motor Vehicles Act empowered a police officer to bring any driver or vehicle owner deemed deficient before the court.

“He can do this if he has reasonable grounds to believe that the driver or vehicle owner has violated the act or is in possession of a fraudulent third-party certificate.

“Thus, I think the I-G’s directive is appropriate.

“He is merely restating what the law has established,” she stated.

NAN noted the presence of police checkpoints in Abeokuta, Ogun's capital, specifically in the Itoki, Laderin, Okelewo, and Idiaba areas, where officers were diligently executing the directive.

In the meantime, Mrs. Yetunde Ilori, who is the president of the Chartered Insurance Institute of Nigeria (CIIN), stated that there has been a decline in the number of vehicles on Nigerian roads that are insured.

She stated that the figure decreased from 3.70 million in 2022 to 3.11 million in 2023.

She mentioned that the number of insured vehicles recorded on the Nigerian Insurance Industry Database (NIID) decreased by 18.97 percent, reaching 3.11 million by the end of December 2023.

For this reason, she praised the I-G for backing mandatory insurance for drivers to safeguard their vehicles.

“A motor insurance policy mainly serves to safeguard a car, bike, or other personal vehicle.

“A comprehensive motor insurance policy ensures that any damage to your vehicle from an accident will be covered by your insurer.

“Whether you need to send it for repairs after an accident, your car was stolen, or it sustained damage from a natural disaster such as fire, riots, explosions, or strikes, insurance companies will ensure that motorists are not burdened with the costs of repairing and restoring their vehicles,” she said.

Mr. Paul Ayeni, a retired commandant of the Nigerian Security and Civil Defence Corps (NSCDC), stated that Nigerians tend to avoid insurance because they perceive it as a scam.

“They view insurance as a scam because their claims go unpaid,” he stated.

He stated, however, that the reforms introduced by the National Insurance Commission (NAICOM), Nigeria Insurers Association (NIA), and other insurance regulatory bodies had led to improvements in claims payment.

As stated in the 2023 annual report of the Nigeria Insurers Association (NIA), this development has led to a 50.7% increase in the aggregate claims disbursed by insurance companies, amounting to N365.5 billion Year-on-Year (YoY) during Q3 2023.

“He stated that, although Nigeria is undergoing a recession with disastrous repercussions for every facet of national life, insurance maintains its role as an economic driver in the Nigerian economy.”

Mr. Chukus Okonta, who previously held the position of President of the Insurance and Pension Writers Association, praised the I-G and encouraged all drivers to obtain the policy.

He stated that their claims would be settled as the need arises. (NAN)(www.nannews.ng)

In the meantime, the police command in Kwara announced that it had begun enforcing the directive and cautioned that those who do not comply could face a one-year prison sentence or a fine of N250,000.

According to SP Adetoun Ejire-Adeyemi, the spokesperson for the command, enforcement and compliance checks commenced statewide on February 1.

“Since the implementation of enforcement measures, there have been no significant arrests.

“Road users are being continuously sensitized about the advantages of motor insurance policies. Additionally, multiple checkpoints have been strategically positioned throughout the state to enforce compliance and guarantee comprehensive coverage.

“The enforcement in Ilorin includes specific checkpoints at locations such as Ganmo, Oloje, Offa Garage, Geri-Alimi, and Challenge, among others.

“The inter lands are included under the supervision of senior officers and men of the force who conduct routine checks to ensure compliance.

“The enforcement level continues to be strict and methodical, in accordance with the IGP’s directive.

“It is within the officers' authority to check insurance documentation and impose required penalties for failure to comply.

„Sie sagte: „Eine Person, die gegen die Bestimmung des Paragraphen 68 des Versicherungsrechts verstößt, begeht eine Straftat und muss bei Verurteilung mit einer Geldstrafe in Höhe von 250.000 Naira oder einem Jahr Gefängnis oder beidem rechnen.“

The spokesperson noted that one of the difficulties of the exercise is motorists' resistance as they try to avoid checks.

She stated that the command is open to viewpoints from legal experts, road safety authorities, and all pertinent stakeholders.

“Our commitment to enforcing this directive, for the sake of public safety and legal compliance, remains steadfast.

“The Kwara Police Command, led by Commissioner of Police Victor Olaiya, assures the public of its professional execution of this mandate and urges motorists to comply to avoid legal penalties,” she stated.