Out of the 13 million vehicles that ply Nigerian roads, only 2.9 million of them have genuine motor insurance policies, according to the Nigerian Insurers Association.
The association noted that the figure was meagre and that more vehicles in the country needed to get insurance policies.
To encourage Nigerians to buy insurance policies for their vehicles, the association noted that it would partner with states like Lagos, Ogun, Kaduna, Niger, and Kogi to ensure that road users obtain insurance policies.
It stated that if a bulk of the population had genuine insurance policies, the insurance sector would generate about N50 billion.
Speaking on the steps taken, the Chairman of the association, Ganiyu Musa, said that work was ongoing to aid states properly effect a mandatory insurance cover by vehicle owners, by putting in place facilities that would enable defaulters to get genuine insurance policies at vehicle licensing offices.
He said, “We are also working closely with the state vehicle inspection service on enforcement of Third Party Motor Insurance in the states.
“Out of the estimated 13million vehicles in Nigeria only about 2,939,767 Third Party Motor policies are in force as of April 2021.”
A Third Party Motor insurance ranks among one of the mandatory insurance policies instituted by the government.
Any vehicle plying the roads is expected to have Third Party Motor Insurance, which is the minimum level requirement for vehicle owners.