The Nigerian insurance industry has reached a watershed moment, recording N2.30 trillion in Gross Premium Written (GPW) at the close of the fourth quarter of 2025. According to the latest performance bulletin released by the National Insurance Commission (NAICOM), the sector achieved a 47.3 per cent year-on-year growth rate, with motor insurance emerging as a critical driver of this expansion, accounting N252.8 billion, 16.1 per cent of the non-life segment’s premium.
Vehicle ownership in Nigeria requires a focus on financial safety. Motor insurance provides the necessary shield against road risks such as accidents, theft, fire, and flood, as well as third-party liabilities, riots, strikes, and civil commotion.
This legal contract ensures an owner avoids massive out-of-pocket expenses after an incident.
The Nigeria Insurance Industry Reform Act (NIIRA) 2025 (specifically Section 84) mandates specific insurance levels for every car on public roads.
Motor insurance functions through risk sharing; a vehicle owner pays a premium into a large pool managed by an insurance company. When an accident occurs, the insurer uses these funds to cover repairs or replacements.
The contract commences on the date indicated in the policy certificate, following the issuance of a policy document outlining the duties of both the insurer and the insured.
The Nigerian Insurance Industry Reform Act (NIIRA) 2025 makes motor insurance compulsory in Nigeria, requiring every vehicle to have at least Third Party coverage.
Law enforcement officers verify these certificates during routine stops, and driving without valid cover leads to fines or vehicle impoundment.
The Nigerian Insurance Industry Database (NIID) serves as the central hub for verifying certificates. Genuine policies appear on this platform (www.askniid.org) immediately, providing a digital verification system that prevents the use of fake documents across all states.
A data obtained from the Nigerian Insurers Association (NIA) revealed that NEM Insurance Plc has solidified its position as the market leader in the motor category.
According to the Q4 2025 bulletin, motor insurance recorded an outstanding claims settlement ratio of 88.5 per cent, reflecting high underwriting quality.
NEM Insurance, which has maintained a presence in Nigeria since 1948, according to data obtained from its website, sits as the top motor insurance provider with a reported revenue of N35.53 billion in this category for 2025. During that period, the company paid over N13.00 billion in motor claims. By December 2025, the company’s insurance revenue stood at over N146 billion; total assets exceeded N178.59 billion.
This financial strength earned the company the Almond General Business Insurance of the Year award for 2025.
Insurance providers offer various plans tailored to budget and risk tolerance:
Third Party Motor Insurance: The minimum legal requirement. It handles damage to others, including medical bills and compensation for accident victims, but does not cover the insured’s own vehicle.
Third Party Fire and Theft: Adds coverage for the insured’s vehicle in cases of fire or theft.
NEM Enhanced Third Party Policy: A tailored product designed by NEM Insurance Plc to provide third-party liability cover alongside limited benefits for the insured’s own damage, bridging the gap for those who cannot afford full comprehensive rates.
Comprehensive Motor Insurance: The highest security level, covering third-party liabilities as well as accidental damage, fire, theft, flood, and vandalism for the insured’s vehicle.
Premium Calculation and Claims Process. Premiums are generally calculated based on the market value of the vehicle.
Standard rates for comprehensive insurance often sit at five per cent of the car’s value (e.g., N500,000 for a vehicle worth N10,000,000).
The Claims Process: Notification: Inform the insurer within 24 hours of the incident.
Documentation: Capture photos of the damage.
Submission: Fill out the claim form with repair estimates.
Inspection & Settlement: A surveyor examines the car before the company pays the repair shop or reimburses the owner.
At NEM Insurance Plc, policyholders benefit from a structure where they are not burdened with an “excess” (the portion the owner pays before the insurer takes over) if specific conditions are met.
Digital access via the NEM e-insurance portal ensures that Nigerians can purchase and manage policies instantly, securing their assets and maintaining peace of mind on the road.
Official Contact Information: NEM Insurance Plc is located at 199, Ikorodu Road, Obanikoro, Lagos.
E-mail: [email protected]; Support: 234-02-014489570 | Claims: +234-8117935563.
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