NIA To Crack Down On Nigeria’s 12 Million Uninsured Vehicles

Of the 12 million vehicles currently on Nigeria’s roads, just 2.5 million of them have a valid auto insurance policy, according to the Nigeria Insurers Association (NIA). The other 9.5 million vehicles on the road either have no insurance in place or are covered by nothing more than a fake motor insurance policy.

Auto insurance requirements

It’s been a legal requirement since 1950 for all of Nigeria’s vehicles to have third-party insurance. Under The Insurance Act 2003, failure to comply can result in a custodial sentence of one year, as well as a fine of up to N250,000.


NIA To Crack Down On Nigeria’s 12 Million Uninsured Vehicles

When an incident on the road occurs, third party cover provides protection for damages occurring to the third party’s property, their vehicle, as well as bodily injuries. Up your cover to a fully comprehensive policy and your own possessions, including your vehicle will be covered, too. 

This could be beneficial seeing as in Q1 of 2018, 2,482 road collisions were reported in Nigeria. 

Nigeria’s fake auto insurance industry

It’s estimated that 64% of vehicles on Nigerian roads hold fake insurance certificates, reports Vanguard. Since 2011, the NIID have been working to educate local drivers on their insurance requirements and to stamp out the false documents in circulation. 

Motor insurance certificates can be checked for their authenticity both online and using a handheld device. And, as there are millions of these pieces of paper out there as a result of cloning and forgery, it’s highly recommended that you take a few minutes to check the authenticity of your policy before you next take to the road.

Clamping down

The Nigerian auto insurance industry is losing N74 billion every year due to the number of uninsured drivers in the country. 

At a recent press event in Lagos, Tope Smart, the Chairman of the NIA, pledged to make Nigerians understand the benefits of obtaining insurance policies from legitimate sources in a bid to shut the fake insurance market down. 

Meanwhile, Yetunde Ilori, the Director General of the NIA was quick to add that uninsured vehicles could be caught at any time as Vehicle Inspection Officers carry mobile devices designed to check the authenticity of auto insurance information.

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The alarming number of uninsured vehicles in Nigeria is worrying and is putting the nation and their automobiles at risk. So, even if you think you’ve got a legitimate policy in place, it’s highly recommended that you double check your documentation.

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