Third Party Motor Insurance In Nigeria

Third party car insurance plan covers the insured vehicle against any legal case, damages or losses done to third party. For example, if  I have a car and my car is under third party insurance coverage, and mistakenly, my car hit another person’s car. Insurance company will fix the another person’s car and pay for damages done to that person’s car living me to fix my own car.

How does third party insurance work in Nigeria?

Some sections of the Nigeria constitution mandates that every vehicle in Nigeria should have at least a third party insurance coverage( Insurance Act 1950) The Act states that it is a criminal offence not to have at least a third


party insurance coverage. So as a Nigerian, have it in mind that if you own vehicle and your vehicle is not under any insurance coverage, and then by mistake your vehicle kill somebody or caused damages to another person. If you are taken to court due to those damages caused by your vehicle, you are likely to face a criminal charges.

How to get third party Insurance policy in Nigeria

Just like Comprehensive insurance coverage, third party insurance policy is sold by most insurance companies approved by NAICOM in Nigeria to cover liabilities arising from accident on third party property damage.

To buy a third party insurance coverage, you will need to complete the “Know your customer form” which contains your personal information, your vehicle details, means of Identification and quote.

Vehicle inspection form

Before filling the form, you should be sure that your Vehicle number, National Identity Number(NIMC) and your Driver’s license ready

Major insurance companies in Nigeria offering third party policies

  • Leadway insurance
  • AXA Mansard Insurance
  • Cornerstone insurance
  • Custodians
  • Allinaz Nigeria
  • Nem insurance
  • AIICO insurance
  • Mutual benefits insurance

How to know if your third party insurance is fake or original

There are many fake insurance agent out there which their main duty is to take advantage of people’s ignorance and rob them of their hard earned money. To reduce the level of scam in the insurance industry, Nigeria government introduced a system where you can always to confirm the authenticity of your insurance policy.

To confirm if your insurance certificate is original, just visit Nigeria Insurance Industry Database(NIID) website and provide your vehicle registration number and policy certificate number, there you will get a confirmation message informing you if your policy is fake or original.

The second way to confirm the authenticity of your certificate is to just dial *565*11# on your mobile phone using the same phone number you used during your registration process. After dialing the short code, you will be required to provide your vehicle registration number. A message will come telling you the statues of your insurance certificate


Third party insurance coverage is only beneficial to a third party, however, it save the policyholders the risk of repair or damages done to third party. It is also cheaper compare to comprehensive insurance coverage. Depending on the type of vehicle, the annual insurance coverage is between N5K to N10k in Nigeria.

Related Article: Comprehensive Motor Insurance in Nigeria?

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