*Calls For Clear Timeframe For Third-Party Insurance Claims, Says N1m Coverage Not Enough

Obioma Ezenwobodo LL.M, the former Chairman of the NBA Garki Branch and Managing Partner at Resolution Attorneys, Abuja, has raised an important call for legislative reform in Nigeria’s third-party motor insurance policy.

The call comes on the heels of the recent announcement by Inspector General of Police, Kayode Egbetokun, that the police force will begin enforcing third-party insurance requirements for motorists from February 1, 2025.

Ezenwobodo highlighted the longstanding legal provisions regarding third-party insurance in Nigeria, dating back to the 1945 Motor Vehicles (Third Party Insurance) Act and reinforced by the 2004 Insurance Act. He pointed out that these policies cover liabilities arising from third-party motor vehicle damages, protecting those who are harmed by accidents involving insured vehicles. However, Ezenwobodo stressed that a major gap exists in the current regulatory framework: the absence of a clear timeframe within which insurance companies must settle claims.

While the Nigerian Police has been empowered to enforce compliance with the policy, Ezenwobodo noted that several challenges have hindered the smooth functioning of third-party insurance. Economic factors, lack of awareness, and poor public sensitization about the benefits of insurance policies have contributed to the widespread ignorance among Nigerian motorists. Additionally, the absence of a prescribed timeline for insurance claims redemption has led to delays and frustrations for those seeking compensation after accidents.

Ezenwobodo emphasized the need for legislative intervention to mandate insurance companies to redeem claims within a reasonable and specified period. He proposed an amendment to both the Motor Vehicles (Third Party Insurance) Act and the Insurance Act to introduce a fast-tracked process for redeeming claims, which would significantly boost public confidence in the insurance industry.

In conclusion, he urged lawmakers to take swift action in reforming the insurance laws, proposing that a clear time frame for claim redemption would not only benefit policyholders but also lead to greater economic growth as more Nigerians would be encouraged to take out insurance policies.

Obioma Ezenwobodo is also the Executive Director of the Policy and Legislative Advocacy Network (PLAN), working to advocate for such reforms in the country.

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