Eighteen years after the initial review of third-party motor insurance to N5,000, the premium may rise to N7,500 before the end of the first quarter of this year due to rising costs of vehicle repairs. This is good news for the insurance sector, but could lead to road users abandoning genuine policy for fake insurance papers. Other African countries pay higher premiums, but market penetration remains low in Nigeria. The automotive supply chain has become costlier, leading to a higher cost of parts replacement and maintenance. Private car owners, who spoke to The Guardian, said the review of the Third-Party Motor Insurance is not humane at this time, coupled with the prevailing economic challenges. The industry survey revealed that only 2.53 million out of 12 million registered vehicles have genuine motor insurance, leaving 9.5 million uninsured. The Nigerian Insurers Association (NIA) also confirmed that only three million vehicles out of 13 million on Nigerian roads are insured, indicating that 77 per cent are uninsured.
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