Digital insurance credentials have become accessible for Nigerian drivers under the recent Insurance Act, allowing them to present insurance information electronically.
In a significant move towards modernization, President Bola Ahmed Tinubu of Nigeria signed the Nigerian Insurance Industry Reform Act (NIIRA) into law in 2025. This Act, aimed at integrating technology into the insurance sector, has brought about a seismic shift in the way motorists in Nigeria manage their car insurance documents.
The NIIRA allows drivers to present their insurance certificate or cover note in either print or electronic form during routine checks and accidents. This shift from hardcopy documentation reflects the Federal Government's effort to modernize auto insurance compliance and enforcement through digital innovation.
With this legal backing, motorists now have fewer excuses for not carrying valid insurance. Whether they keep it in their glove box or on their smartphones, drivers can now provide proof of car insurance quickly and conveniently. This provision is expected to accelerate digital adoption in the insurance industry in Nigeria.
The Act introduces sweeping reforms, including stringent capital requirements, compulsory car insurance enforcement, and digitization mandates. The Nigerian Insurance Reform Act also aligns with broader efforts to integrate technology into vehicle registration, law enforcement operations, and auto insurance verification systems in Nigeria.
The new Act provides for comprehensive regulation and supervision of all insurance and reinsurance businesses operating within Nigeria. The National Insurance Commission (NAICOM) is mandated to administer and implement the provisions of the NIIRA 2025 in a manner that unlocks the industry's full potential and significantly improves insurance penetration across the country.
It's important to note that failure to comply with the provision of presenting a valid car insurance certificate during routine checks attracts a fine of up to N25,000 upon conviction. In the event of an accident involving bodily harm, a person who fails to comply with this provision could be fined up to N50,000 upon conviction.
The NIIRA 2025 has repealed and consolidated several outdated insurance laws into a single, modern legal framework. This Act outlines procedures in the event of a road accident involving bodily harm, in addition to the relevant provisions of the Road Traffic Laws.
The Nigerian Insurance Reform Act marks a significant step forward in Nigeria's journey towards a more digitally-integrated and efficient insurance industry. Industry players and consumer rights advocates have long called for such modernization, and with the NIIRA now in effect, it seems that Nigeria is poised to reap the benefits of a more streamlined and technologically advanced car insurance sector.
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