NIIRA mandates insurers to fund Police, FRSC, Road-traffic agencies
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Chuks Udo Okonta
The Nigerian Insurance Industry Reform Act (NIIRA) 2025 has mandated insurance companies to pay 0.5 per cent of underwriting profit on motor business into the Road Safety and Accident Victims Compensation Fund, of which 30 per cent should be given as grants to the Federal Road Safety Commission (FRSC); Nigeria Police and Road-traffic agencies.
Section 99 and 100 of the Act which made these provisions, stated that a Road Safety and Accident Victims Compensation Committee should be constituted and should comprise, a member of the Nigerian Insurers Association (NIA); three appointees by the National Insurance Commission (NAICOM); two representatives from NAICOM; a representative of FRSC; a representative from Nigeria Police; an appointee of State Traffic Agencies; representative of Federal Ministry of Finance and representatives of insurance intermediaries.
The NIIRA stated that the amount from every insurer should be paid quarterly to the fund and should be administered by the committee.
On the disbursement, it said 10 per cent of the fund should go to the FRSC as grants for purchase of equipment; 10 per cent to NPF as grants for the purchase of equipment and 10 per cent to Road-traffic agencies for the procurement of equipment.
