By David Akinmola
An underwriter, Universal Insurance is set to unveil a revamped third-party motor insurance policy that promises added value for Nigerian motorists, offering enhanced protection beyond the statutory minimum.
The upgraded product, which includes additional services such as towing, emergency assistance, and medical cover, is part of the company’s broader strategy to drive innovation, improve customer experience, and deepen insurance penetration in Nigeria’s underserved motor insurance market.
Industry experts say this development could significantly improve motorists perception of third-party insurance, which is often viewed as a compulsory but low-value product. The upgraded offering is expected to appeal particularly to low- and middle-income car owners who rely on affordable insurance plans but desire broader protection.
Speaking on development, the Managing Director and Chief Executive Officer of Universal Insurance Plc, Dr. Jeff Duru, said the company’s decision to enhance its third-party motor insurance was informed by the need to bridge the value gap in the current offering and attract more Nigerians into the insurance net.
“The majority of vehicle owners in Nigeria only buy insurance because it is mandated by law, not because they see real benefit in it. We want to change that narrative, “Duru stated.
“With the enhanced third-party motor policy, policyholders will now get additional protection that gives peace of mind without paying more.”
According to the National Insurance Commission (NAICOM), over 12 million vehicle ply Nigerian roads, yet less than 3 million have any form of genuine motor insurance.
Universal Insurance is optimistic that the value-added features of its enhanced third-party product could help reduce this protection gap by making insurance more attractive and meaningful to motorists.
Motorists will particularly benefit from cover for third-party liabilities the standard protection against damage to other people’s vehicles or property as well as new add-ons like limited compensation for accidental death or disability, emergency support, and roadside assistance in some cases.
Insurance analysts say the rollout could trigger competitative adjustments in the industry as more insurers seek to improve their third-party offerings to retain market share.
“This is a smart move by Universal Insurance,” said Akinyemi Ogunleye, a policyholders at the weekend. “With millions of motorists depending on third-party plans, upgrading the product to offer more tangible benefits could encourage compliance, improve public trust, and ultimately boost insurance penetration.”
Universal Insurance’s initiative also aligns with the broader regulatory push by NAICOM to deepen insurance uptake across Nigeria and improve consumer experience through innovation and customer-focused products.
The insurer said it has developed a simplified process for purchasing and renewing the enhanced third-party policy, including via mobile platforms, to ensure easy access and nationwide availability.
With affordability, value, and convenience at its core, the upcoming launch of Universal Insurance’s enhanced third-party motor insurance could mark a turning point in how Nigerian motorists view and interacts with compulsory insurance.
