Accident victims of uninsured, unidentified motorists to get N2m medical compensation

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Chuks Udo Okonta

The Nigerian Insurance Industry Reform Act (NIIRA) 2025 has provided that any person involved in a motor accident by an uninsured vehicle or unidentified driver would be catered for provided such hospital expenses shall not exceed the sum of N2 million.

Section 99 of the Act stated that the amount may be reviewed by the National Insurance Commission (NAICOM), noting that a fund known as Road Accident Victims Compensation Fund (RACC) is established and insurers are to pay 0.5 per cent of the underwriting profit on motor business to the pool of fund.

The Act established the Road Safety and Accident Victims Compensation Committee (RSAVCC) which would be responsible for overseeing the management of the fund.

The Act submitted that NAICOM shall pay compensation in accordance with its regulations to any person in respect of death or bodily injury following a motor vehicle accident caused by an uninsured vehicle or unidentified driver.

It said expenses reasonably incurred by an hospital, known to have treated any person involved in any motor accident by an uninsured vehicle or unidentified driver has to be settled from the fund.