By Henry Uche
Hit-and-run drivers are a global scourge, but their notoriety reverberates fiercer in developing climes like Nigeria.
They hit, maim and perhaps, kill their victims and disappear because ‘no eyes were watching’.
But all hopes for the victims are not lost as the law has taken care of such ugly scenarios.
It is embedded in the third-party insurance compensation protocol, though many victims are ignorant of that relief window.
Interestingly, regulatory bodies of the insurance sector across the world are already strengthening enforcement of mandatory third-party insurance policies to better protect victims of hit-and-run/unidentified drivers and uninsured vehicles seeking compensation.
Despite legal requirements, compliance in Nigeria remains inconsistent, leaving many accident victims without financial recourse during recovery.
Experts say that 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.
Section 99 of Part X, of the Nigerian Insurance Industry Act (NIIRA) 2025, said there is established a Fund to be known as the ‘Road Accident Victims Compensation Fund (hereinafter referred w as “the Fund”)’ into which shall be paid 0.5% of the underwriting profit on motor insurance business.
While Section 100 (1), affirmed the establishment of the Road Safety and Accident Victims Compensation Committee (in this Act, referred to as “the Compensation Committee”) responsible for over-seeing the management of the Fund.
Subsection two said, the Compensation Committee shall consist of; a Chairman representing the insurance industry (Nigerian Insurers Association); three persons appointed by the Commission, one of whom shall be a medical practitioner with cognate experience in orthopedic and trauma medicine; two representatives of the Commission; (d) a representative of the Federal Road Safety Corps; (e) a representative of the Nigerian Police Force; a person to be appointed by the State Traffic Agencies on rotation basis among the States of the federation.
Others are: A representative of the Federal Ministry of Finance, from the directorate cadre; and representatives of intermediaries.
Meanwhile the amount due from every insurer under section 99 shall be paid quarterly to the Fund which shall be administered and disbursed, on the recommendation of the Compensation Committee, by the Commission.
It provided that, the Commission shall on the recommendation of the Compensation Committee administer and disburse money accruing to the Fund as follows: 10% to the Federal Road Safety Commission as grant for the procurement of equipment; 10% to the Nigeria Police Force as grant for the procurement of equipment; and 10% to road-traffic agencies for the procurement of equipment; 65% into a separate fund out of which the Commission shall pay compensation, in accordance with regulations made by the Commission, to any person in respect of death or bodily injury following a motor vehicle accident caused by an uninsured vehicle or an unidentified driver and expenses reasonably incurred by any hospital known to have treated any person involved in any motor accident by an uninsured vehicle or unidentified driver provided such hospital expenses shall not exceed the sum of N2,000,000 for any person treated and this may be reviewed by the Commission; as well as not more than 5% as cost of administration and management of the Fund.
The law further spelt out that, an insurer who defaults in making payment as required under section 99 is liable to a penalty of a sum equal to five times the amount payable. provided that persistent noncompliance with the requirement of section 99 shall be a ground for suspension of authorisation to underwrite motor insurance policies by the Commission.
It added that, subject to the approval of the Minister, on the recommendation of the Commission, the percentage disbursement stipulated in subsection (4) may be reviewed every five years after the commencement of this Act.
More over, any person who is found guilty of an offence under this Part for which no specific penalty is provided is liable in respect of a first conviction, to a penalty of N250,000 or imprisonment for six months or both and in the case of a second or subsequent conviction to a penalty of N500,000 or imprisonment for a maximum term of 12 months or both.
Mr. Ade Adesokan, an insurance expert, in an interview, spoke on the process of making compensation and rehabilitation for ‘hit-and-run victims’ seamless.
He recalled a case of a 34-year-old commercial driver, Joseph Adebayo, who found himself in a devastating predicament.
In the chaotic aftermath of a hit-and-run accident on Lagos-Ibadan expressway, with his vehicle severely damaged and three passengers injured, Adebayo faced mounting hospital bills and loss of livelihood with no culpable party to hold accountable.
What Adebayo did not realise 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” Adesokan said.
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.
Other 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 recognised these challenges and has been working assiduously 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/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.” He emphasized that many victims fail to seek compensation simply because they are unaware of available compensatory 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 on his part highlighted the value of this multi-agency collaboration saying: “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 in the recent past.
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 App 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” NAICOM assured.
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,” 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.
Of Joseph Adebayo’s story, the insurance expert added that the journey to compensation was unnecessarily complicated. Six months after his accident, with the assistance of a volunteer legal aid worker, Adebayo 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” Adesokan stressed.
Asked of the possibility of accident victims to muster the strength and to initiate the process of Seeking Fund at the time of accident when in some cases, accident victims are either unconscious or physically indisposed to do anything thing reasonable, Adesokan explained “Yes after an accident, victims often face physical injuries, emotional distress, and financial challenges, all while being expected to navigate complex bureaucratic processes to access the Seeking Fund.
“However, the reality is that most accident victims lack the physical and emotional capacity to efficiently manage insurance claims during their recovery. Even with a mobile app designed to simplify the process, those dealing with injuries, hospital stays, medication effects and psychological trauma would still struggle with tasks like submitting documentation, tracking claim status, responding to rejections and understanding legal requirements”
He added: “A more practical and compassionate approach would involve third-party assistance. Family members or designated representatives should be legally empowered to initiate and manage claims on behalf of victims”
The public affairs analyst maintained that hospital designated workers could play a vital role in connecting patients with Seeking Fund resources, while NAICOM’s Certified Advocates, perhaps stationed at major hospitals, could proactively identify and support ‘hit-and-run victims’.
“Integrating claims initiation into the hospital admission process for accident victims would provide a seamless way to ensure they receive necessary financial aid immediately.
“This exposes a significant gap in the current system—the absence of structured third-party advocacy that acknowledges the real limitations victims face during recovery.
“While OSCAR provides some foundational support, a more formalized process allowing third parties to officially act on behalf of victims is essential to addressing this critical flaw.
“For NAICOM’s proposed mobile App to be truly effective, it must include functionality that enables authorized third parties to manage claims entirely, with robust privacy safeguards and mechanisms for securing victim consent,” he suggested.
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