Public Protection and the Regulation of Compulsory Liability Insurance in Nigeria

Abstract

Compulsory liability insurance is one of the means by which the State

seeks to protect the citizenry from the risk of death, bodily injury or loss

of property they may be exposed to from certain activities of individuals

and entities. This article examines the laws regulating compulsory

liability insurance in Nigeria and the enforcement of the rights of third

parties within the context of the common law rule of privity of contract.

It is argued that the current tort-based system of compensation coupled

with some regulatory challenges patently constitute a hindrance to a

timely enforcement of the right of third parties under the contract of

insurance. Drawing lessons from some other common law jurisdictions,

including the United Kingdom and South Africa, suggestions towards

enhancing the enforcement of third party rights in Nigeria, including a

case for the institutionalisation of a no-fault system of compensation that

would guarantee quick and effective compensation to affected citizenry,

are made.