The New Insurance Law: What NIIRA 2025 Means for Policyholders

On 31 July 2025 the President signed the Nigerian Insurance Industry Reform Act 2025 (NIIRA). It replaced the old insurance laws with one law, and the National Insurance Commission (NAICOM) regulates insurers under it.

Claims must be paid on time

Under NIIRA, once an insurer has admitted a claim and has all the documents it needs, it must pay within 60 days. An insurer that pays late faces penalties. If your insurer keeps asking for new documents or delays without a reason, keep a record of every date and every document you send.

A fund to protect policyholders

The Act creates an Insurance Policyholders' Protection Fund. Its purpose is to pay policyholders when an insurance company fails and cannot pay its claims.

Stronger insurers

NIIRA raised the minimum capital insurers must hold: ₦10 billion for life insurers, ₦15 billion for non life insurers, ₦25 billion for composite insurers and ₦35 billion for reinsurers. The deadline was 31 July 2026. Reports in August 2026 said a small number of insurers missed it and had their licences cancelled, and that some of them are challenging this in court.

So check that your insurer still holds a valid NAICOM licence, especially before you renew a policy.

Compulsory insurance you may need

Vehicles

Third party motor insurance remains compulsory for every vehicle on the road. For a private car the premium is ₦15,000 a year, a rate NAICOM set in 2023.

Buildings under construction

NIIRA also makes insurance compulsory when a building of more than one floor is being put up, to cover injury to workers and members of the public. Confirm what cover you need with a lawyer or your insurer before building starts.

What to do if your claim is not paid

1. 1.Write to the insurer, attach your documents, and ask for a decision in writing.
2. 2.Keep copies of everything and note the date the insurer received your last document.
3. 3.If an admitted claim is not paid within 60 days, complain to NAICOM.
4. 4.Speak to a lawyer if a large amount is at stake.