ADE ADESOKAN
Regulatory bodies are strengthening enforcement of mandatory third-party insurance policies to better protect hit-and-run victims seeking compensation. Despite legal requirements, compliance remains inconsistent, leaving many accident victims without financial recourse during recovery.
The compensation system faces challenges including lengthy claim processes, documentation hurdles, and public unawareness of available benefits. Authorities are implementing stricter verification protocols while simultaneously streamlining the claims procedure for victims. Enhanced coordination between traffic police, insurance providers, and compensation funds aims to close existing gaps in the system, ensuring that even when drivers flee accident scenes, victims can still access the financial support legally established for their protection and rehabilitation.
In the chaotic aftermath of a hit-and-run accident on Lagos-Ibadan expressway, 34-year-old commercial driver Joseph Adebayo found himself in a devastating predicament. With his vehicle severely damaged and three passengers injured, he faced mounting hospital bills and loss of livelihood with no culpable party to hold accountable.
What Adebayo didn’t realize was that a financial safety net existed specifically for situations like his—the Seeking Fund, a mechanism designed to provide compensation to victims of hit-and-run accidents.
The enforcement of third-party insurance in Nigeria represents a critical intersection of public safety and financial protection. While motor vehicle insurance is mandatory under Nigerian law, compliance rates remain concerningly low, and public understanding of available protections, particularly for hit-and-run scenarios, remains minimal. This knowledge gap has created a situation where legitimate victims suffer unnecessarily, despite existing mechanisms designed to assist them.
A notable initiative addressing this challenge is the One Stop Claims Shop for Victims of Motor Accidents (OSCAR), originally established by SERVICOM. It brings together multiple stakeholders in a coordinated response system, including the Nigeria Police Force, States Ministries of Health, FCT Health and Human Services Secretariat, the National Insurance Commission (NAICOM), and the Legal Aid Council. Supporting partners include the Federal Road Safety Commission (FRSC), Vehicle Inspectorate Office (VIO), the National Union of Road Transport Workers (NURTW) and the Ministry of Information and Communication.
This integrated framework has proven instrumental in facilitating insurance claims for motor accident victims, with special focus on vulnerable and indigent populations. Beyond claims processing, OSCAR assists victims in obtaining essential documentation such as police reports, health certificates, and death certificates—paperwork that often presents significant barriers to compensation. The initiative also provides crucial legal advice and representation, bridging knowledge gaps that might otherwise prevent victims from pursuing rightful claims.
Meanwhile, the Nigerian Insurance Commission (NAICOM) has recognized these challenges and has been working to strengthen collaborative efforts with key stakeholders too. In a recent joint operation, NAICOM partnered with the Nigeria Police Force and Federal Road Safety Corps (FRSC) to conduct insurance verification exercises across major highways. These operations not only enforce compliance with third-party insurance requirements but also serve as educational opportunities, informing motorists about the importance of insurance coverage and the existence of the Seeking Fund for hit-and-run victims.
According to Mr. Olusegun Omosehin, Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission, these collaborative enforcement efforts have begun yielding results. When we combine verification exercises with public education, we see a dual benefit. Not only do we increase compliance rates, but we also ensure that accident victims understand their rights and options for compensation, Omosehin reportedly said during a stakeholders’ meeting recently. He emphasized that many victims fail to seek compensation simply because they’re unaware of available options.
Also, the Nigeria Insurers Association (NIA) has been instrumental in this partnership, providing technical support and industry coordination. Through their Nigerian Insurance Industry Database (NIID), law enforcement agencies can now verify insurance policies in real-time during roadside checks. This technological integration has significantly reduced the prevalence of fake insurance certificates while enhancing the efficiency of enforcement operations.
Inspector General of Police, Kayode Egbetokun, highlighted the value of this multi-agency collaboration. “Road safety is a shared responsibility. When we work together with NAICOM, FRSC, and other stakeholders, we create a more comprehensive approach to both enforcement and victim protection, he noted. The Police Force has now included insurance verification in their standard checkpoint procedures, with officers trained to educate motorists about insurance requirements and protections.
For the FRSC, the collaboration represents an extension of their mandate to create safer roads. The Corps Marshal, Shehu Mohammed has directed the integration of insurance awareness into the Corps’ public education campaigns. “We don’t just want to enforce compliance; we want road users to understand why third-party insurance matters and how it protects not just them but others on the road,” Mohammed stated during a joint press briefing with NAICOM officials.
Despite these efforts, significant challenges remain. The Seeking Fund, while crucial for hit-and-run victims, suffers from procedural complexities and limited visibility. Many accident victims encounter obstacles when attempting to access compensation, often navigating a bureaucratic bottleneck during an already difficult time. This has prompted calls for a more streamlined approach to claims processing.
In response, NAICOM has announced plans to develop a dedicated mobile application designed to simplify the claims process for hit-and-run accident victims and others. The proposed application would guide users through the required documentation, connect them with nearby support services and provide real-time updates on claim status.
Our goal is to create a platform where victims can initiate claims with minimal stress and maximum transparency, it has been reported.
The application, currently in the development phase, would feature geolocation services to help users document accident scenes, direct integration with police report systems and connectivity with hospital networks for medical documentation. This technological solution represents a significant step forward in addressing the inefficiencies that have hampered the Seeking Fund’s effectiveness.
Beyond technological solutions, stakeholders are exploring structural improvements to the compensation system. The Motor Accident Victims Insurance Compensation Scheme, a complementary initiative to the Seeking Fund, is being revitalized through increased funding and expanded coverage parameters. These enhancements aim to create a more comprehensive safety net for accident victims, particularly those involved in hit-and-run incidents.
The Nigeria Insurers Association (NIA) has also been instrumental in promoting industry best practices for handling hit-and-run claims. NIA’s officials have called for standardized procedures across member companies. “When insurance providers adopt consistent, victim-centered approaches to claims processing, we strengthen public confidence in the system,”it has been reported. This industry-wide approach includes specialized training for claims officers and dedicated support lines for hit-and-run victims.
For ordinary Nigerians, navigating the aftermath of a hit-and-run accident remains challenging. Legal experts recommend several immediate steps: reporting the incident to the nearest police station, documenting all injuries and damages thoroughly, seeking medical attention promptly, and inquiring specifically about the Seeking Fund when filing reports. These proactive measures can significantly improve one’s chances of receiving compensation.
Community-based organizations have emerged as valuable intermediaries in this ecosystem. Groups like the Road Safety Advocacy Network have trained volunteers who assist hit-and-run victims with documentation and claims submission. These grassroots efforts help bridge the knowledge gap, particularly in underserved communities where insurance literacy remains low.
As enforcement of third-party insurance continues to strengthen through multi-agency collaboration, experts emphasize the need for a balanced approach that combines compliance measures with victim support. The ultimate goal is to create a system where insurance coverage is universal, verification is efficient and compensation mechanisms are accessible to those who need them most.
For Joseph Adebayo, whose story began this article, the journey to compensation was unnecessarily complicated. Six months after his accident, with the assistance of a volunteer legal aid worker, he finally received partial compensation through the Seeking Fund. “The money helped me repair my vehicle and get back to work,” Adebayo recalled. “But if I had known about this option immediately, it would have saved my family months of hardship.”
As NAICOM and its partners continue working to enhance the enforcement of third-party insurance and improve hit-and-run compensation mechanisms, stories like Adebayo’s underscore the urgent need for both systemic improvements and public education. The developing mobile application, strengthened stakeholder collaborations and streamlined processes represent promising steps toward a more responsive and accessible insurance ecosystem—one where no accident victim is left without recourse due to simple lack of awareness.
Through these coordinated efforts, Nigeria moves closer to realizing the true potential of third-party insurance and specialized covers like the Seeking Fund: not merely as regulatory requirements, but as essential financial safety nets that protect citizens during their most vulnerable moments on the road.
Ade Adesokan is a public affairs commentator.
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