Leadway Assurance has raised concerns over the low level of compliance with third-party motor insurance in Nigeria, revealing that only about 30% of vehicle owners have the mandatory coverage. The company described the situation as alarming, emphasizing the risks it poses to road users and the insurance industry.
According to Leadway, third-party motor insurance is crucial for protecting motorists from financial liabilities arising from accidents, yet a majority of vehicle owners either lack valid policies or rely on fake insurance certificates. The firm urged relevant authorities, including the Federal Road Safety Corps (FRSC) and the Nigerian Insurance Association (NIA), to step up enforcement and public awareness efforts.
Industry analysts have attributed the low compliance rate to factors such as weak enforcement, lack of awareness, and the perception that insurance claims are difficult to process. To address this, Leadway called for digital verification systems and stricter penalties for defaulters to ensure that motorists comply with the law.
As discussions on improving compliance continue, stakeholders stress that increasing awareness and making insurance more accessible will be key to protecting lives and property on Nigerian roads.
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