NAICOM, FRSC Partner to Strengthen Enforcement of Third-Party Motor Insurance Nationwide

The National Insurance Commission (NAICOM) and the Federal Road Safety Corps (FRSC) have announced a new strategic collaboration aimed at improving compliance and enforcement of third-party motor insurance across Nigeria. The partnership, which was formally unveiled in Abuja, seeks to curb the rising cases of uninsured vehicles on Nigerian roads, enhance road safety, and promote financial protection for motorists and accident victims.

Speaking during the official launch of the initiative, the Commissioner for Insurance, Mr. Olusegun Omosehin, said the move marks a significant milestone in the country’s effort to integrate technology and regulatory enforcement in the motor insurance ecosystem. He noted that the collaboration will ensure that every vehicle operating on Nigerian roads is duly insured as required by law. “We are taking a bold step to align insurance compliance with traffic regulation. This partnership with the FRSC will not only boost revenue but also protect road users from financial loss in the event of accidents,” Omosehin stated.

He explained that under the new arrangement, the FRSC will work closely with NAICOM to verify vehicle insurance policies in real-time using the Nigerian Insurance Industry Database (NIID). The NIID is a central electronic platform designed to enable law enforcement agents and the public to confirm the authenticity of motor insurance policies instantly.

The Commissioner said, “With this system, officers on the road can check if a vehicle has valid third-party insurance just by inputting the registration number. Any motorist found driving without a valid policy will face penalties as prescribed by law.”

According to NAICOM, third-party motor insurance remains the most widely used insurance policy in Nigeria, yet compliance has historically remained low, with estimates showing that nearly 70% of vehicles on Nigerian roads are either uninsured or carry fake insurance papers. The commission believes that its partnership with the FRSC will drastically reduce such cases by linking insurance verification directly with road safety enforcement.

The Corps Marshal of the FRSC, Dauda Biu, expressed the Corps’ readiness to collaborate fully with NAICOM in implementing the initiative. He stressed that the enforcement of valid motor insurance would complement the FRSC’s mandate of ensuring road safety and accountability among road users. “Every road accident has both safety and financial implications. Our partnership with NAICOM will help ensure that victims of road crashes are adequately compensated while also discouraging reckless driving and non-compliance,” Biu said.

Biu further stated that the FRSC is adopting digital tools to integrate insurance verification into its vehicle registration and inspection processes. He explained that through a unified system, officers will have access to an updated database that identifies uninsured vehicles, thereby improving enforcement efficiency and reducing human interference.

NAICOM also revealed that it has begun engaging with relevant stakeholders in the insurance, transport, and security sectors to ensure the smooth implementation of the policy. This includes insurance companies, vehicle licensing offices, and law enforcement agencies across the 36 states of the federation.

In addition, the Commission said that motorists who comply with the insurance regulations will benefit from faster vehicle registration renewals and access to digital verification platforms. “The idea is to make compliance convenient and beneficial. By embracing digital insurance, vehicle owners can easily confirm their policy validity on mobile devices and avoid unnecessary penalties,” Omosehin explained.

Industry observers have welcomed the partnership, describing it as a step toward achieving a more transparent and accountable motor insurance system. The President of the Nigerian Insurers Association (NIA), Mr. Kunle Ahmed, lauded NAICOM and FRSC for the initiative, noting that it would help to eliminate fake insurance certificates and restore public confidence in the industry. “This collaboration will drive real value for motorists and insurers alike. It will also deepen insurance penetration and ensure that accident victims get fair compensation without delays,” he said.

According to insurance analysts, the partnership could boost insurance revenue significantly, considering that over 13 million registered vehicles currently operate on Nigerian roads. If properly enforced, the initiative could generate billions in annual premiums while improving accident recovery outcomes.

However, stakeholders also stressed the need for public awareness and sensitization to ensure that motorists understand the benefits of genuine insurance coverage. They advised that NAICOM and FRSC should intensify campaigns through the media, transport unions, and road safety workshops to educate the public on the importance of compliance.

In line with this, NAICOM announced that it would launch a nationwide awareness drive to educate vehicle owners about the legal, financial, and social implications of driving without valid insurance. The campaign will also highlight the ease of verifying policy authenticity through the NIID portal and the use of the USSD short code 56511#, which allows motorists to confirm their policy status instantly.

The collaboration between NAICOM and FRSC represents one of the most comprehensive attempts to enforce third-party motor insurance compliance in Nigeria’s history. Both agencies have expressed optimism that the initiative will not only promote road discipline but also protect the interests of law-abiding citizens.

Omosehin concluded by reaffirming the Commission’s dedication to protecting policyholders and modernizing insurance regulation through technology. “This partnership with the FRSC is part of our broader reform agenda to make insurance accessible, credible, and beneficial to all Nigerians. Together, we will ensure that every vehicle on the road contributes to a safer and more secure transportation system,” he said.

As implementation begins nationwide, analysts expect the initiative to create a more efficient, transparent, and sustainable motor insurance environment, while enhancing road safety and financial inclusion for millions of Nigerian motorists.