Section 6: Requirements in respect of policies, and certificate of insurance.

(1) A policy of insurance for the purposes of this Act must be a policy which-
(a) is issued by an insurer approved by the Minister; and
(b) insures such persons or classes of person as may be specified in the policy in respect of any liability which may be incurred by him or them in respect of the death of or bodily injury to any person caused by or arising out of the use of a motor vehicle covered by the policy:
Provided that such policy shall not be required to cover-
(i) liability in respect of the death arising out of and in the course of his employment of a person in the employment of a person insured by the policy or of bodily injury sustained by such a person arising out of and in the course of his employment; or
(ii) save in the case of a passenger vehicle or where persons are carried by reason of or in pursuance of a contract of employment liability in respect of the death of or bodily injury to persons being carried in or upon or entering or getting on to or alighting from a motor vehicle at the time of the occurrence of the event out of which the claims arise; or
(iii) any contractual liability.
(2) Where any payment is made, whether or not with an admission of liability, by-
(a) an approved insurer under or in consequence of a policy issued under the provisions of this Act; or
(b) the owner of a motor vehicle in relation to the user of which a security under section 7 of this Act is in force; or
(c) the owner of a motor vehicle who has made a deposit under section 5 of this Act,
in respect of the death or bodily injury to any person arising out of the use of a motor vehicle and the person who has so died or received bodily injury has to the knowledge of the approved insurer or such owner as the case may be received treatment at a hospital, whether as an in-patient or an out-patient, in respect of the injury so arising, there shall be also paid by the approved insurer or such owner to such hospital the expenses reasonably incurred by such hospital in giving such treatment after deducting any moneys actually received by such hospital in payment of a specific charge for such treatment:
Provided that the amount to be paid by the approved insurer or the owner shall not exceed one hundred naira for each person so treated as an in-patient and ten naira for each person so treated as an out-patient.
(3) Notwithstanding anything in any written law contained a person issuing a policy of insurance under this section shall be liable to indemnify the persons or classes of person specified in the policy in respect of any liability which the policy purports to cover in the case of those persons or classes of person.
(4) A policy shall be of no effect for the purposes of this Act unless and until there is issued by the approved insurer to the person by whom the policy is effected a certificate, in this Act referred to as a certificate of insurance, in the prescribed form and containing such particulars of any conditions subject to which the policy is issued and of such other matters as may be prescribed.