Written by But before then, the Motor Vehicles Act of 1945 was in place in Nigeria. The Motor Vehicle Act made it compulsory for every motorist to have an insurance policy covering third-party legal liability for accidents.
However, the First insurance regulation after independence is the Insurance Companies Act of 1961.
Let us look at the Insurance Companies Act of 1961 in detail.
The Insurance Companies Act, 1961
The key highlight of this act is that it distinguishes between locally-based and foreign-based insurance companies existing in Nigeria.
The insurance company Act require that a local-based insurance company should have a paid-up capital of not less than £25,000(N50,000) while a foreign-based insurance company should have a paid-up capital of not less than £50,000(N100,000).
