By Ephraim Oseji

Coronation Insurance Plc recently hosted a webinar to demystify third-party motor insurance. The session brought together key industry experts, including Uko O. Uko, CRC Unit Commander at the Federal Road Safety Corps (FRSC), Charles Oghiabu, Head of Retail Claims at Coronation Insurance Plc, Mary-Anne Momoh-Ige, Government Relations Specialist at inDrive Africa, and Felix Boateng, Head of Underwriting at Coronation Insurance Ghana.

The keynote address emphasized the critical role of third-party motor insurance in financial protection and legal compliance.

During the discussion, the keynote speaker emphasized that Section 68 of the Insurance Act (2003) makes it a criminal offence to drive without valid third-party motor insurance. “Many Nigerians don’t realize that driving without third-party insurance is a serious crime,” he stated. “The law is clear—violators face up to one year in prison, a fine of N250,000, or both.”

He stressed that third-party motor insurance is not just a requirement; it is a safeguard against the unpredictable risks of being on the road.

Participants were reminded that accidents are unpredictable. A seemingly normal day on the road can quickly escalate into a situation where one is faced with vehicle damage, injuries, or even legal battles. Mary-AnneMomoh-Ige illustrated this with real-life scenarios, highlighting that while minor accidents might only result in minor disputes, severe incidents can lead to significant financial burdens.

“One moment you’re driving smoothly; the next, you’re faced with medical bills and legal trouble,” she noted.

The session reinforced the necessity of third-party motor insurance as a financial safety net that absorbs the shock of unforeseen road incidents.

With the intensified enforcement of third-party motor insurance compliance by the Nigeria Police Force from February 1, 2025, the webinar participants were reminded of the importance of adherence. Authorities have ramped up routine checks, and drivers without valid insurance now face immediate consequences.

“Ignorance is not an excuse,” the keynote speaker warned. “Vehicles will be impounded, fines will be issued, and in some cases, legal action may follow.”

The discussion moved to what third-party motor insurance covers, emphasizing its role in providing financial protection against liabilities to third parties. Coverage includes compensation for injuries, fatalities, and damages to third-party property.

However, exclusions apply in cases where accidents involve driving under the influence, invalid licenses, underage drivers, or vehicles used for illegal activities. These exclusions reinforce the importance of responsible driving alongside having valid insurance coverage.

Understanding the claims process is equally important. Participants were advised to report accidents immediately and obtain a First Information Report (FIR) from the nearest police station, especially in cases involving injuries or significant damage. To facilitate smooth claims processing, affected parties must gather all relevant details, including accident descriptions, policy information, medical and damage reports, witness statements, and photographic evidence.

“A surveyor may be assigned to assess the damage before claims are finalized,”Charles Oghiabu noted. The payout is then made directly to the affected third party or their service provider, ensuring that the claim benefits those who need it most.

For cases where another driver is at fault, victims can file a claim against the offender’s third-party insurance to cover vehicle repair costs, medical expenses, and compensation for loss of use. The ease of this process underscores the importance of ensuring that all vehicles on the road are properly insured.

The affordability of third-party motor insurance was also a key point of discussion. With a premium of just N15,000 per year, Coronation Insurance provides third-party property damage coverage of up to N3 million and ensures compensation for injuries or fatalities. Olamide Olajolo, the Managing Director of Coronation Insurance Plc highlighted that this cost-effective coverage saves policyholders from out-of-pocket settlements and legal penalties.

“For less than the cost of a minor car repair, you get legal compliance and financial security,” he noted.

The webinar concluded with a powerful reminder that insurance is not merely a regulatory requirement—it is a strategic financial decision. “Insurance is not just about paying premiums; it’s about safeguarding your finances from unexpected disruptions,” a speaker emphasized.

By securing third-party motor insurance, vehicle owners can drive with confidence, knowing they are protected against unforeseen risks.

Coronation Insurance reaffirmed its commitment to making third-party motor insurance accessible and straightforward. With an easy claims process, expert support, and reliable coverage, the company ensures that vehicle owners can navigate the uncertainties of the road with confidence.