New Law Offers N2m Medical Compensation For Uninsured Accident Victims

The Nigerian Insurance Industry Reform Act (NIIRA) 2025 has introduced a new law to provide N2 million in medical compensation for victims of road accidents involving uninsured vehicles. The aim is to ensure that accident victims are not left without financial support for medical treatment if the vehicle involved is uninsured.

Under this law, anyone injured in an accident caused by a car without insurance will receive the compensation. The National Insurance Commission (NAICOM) will oversee the Road Accident Victims Compensation Fund, which will be funded by insurers.

The Act also includes provisions for higher capital requirements for insurance companies, mandatory enforcement of compulsory insurance policies, digitization mandates, and expanded regional insurance cooperation. NIIRA 2025 is seen as a transformative law that will modernize and strengthen the Nigerian insurance sector, boosting investor confidence and increasing insurance penetration in the country.

It is expected to drive innovation and contribute significantly to Nigeria's economic growth.