10m Vehicles Uninsured As Insurers Engage 5 States To Recoup N50bn

10m Vehicles Uninsured As Insurers Engage 5 States To Recoup N50bn

5/10/2021 4:49:00 AM

10m Vehicles Uninsured As Insurers Engage 5 States To Recoup N50bn

...13 million vehicles on Nigerian roads, only three million of them have at least third party motor insurance certificates.........

BY ZAKA, KHALIQ, LagosOf the estimated 13million vehicles on Nigerian roads, only three million of them have at least third party motor insurance certificates, while about 10million of them remain uninsured, LEADERSHIP checks have revealed.The 10million uninsured vehicles, it was gathered, include those owned by the government, private individuals and companies.

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Investigations by this paper showed that some of these vehicles parade fake motor insurance papers, while some do not have any insurance coverage, even as few of them with genuine insurance papers have failed to renew them when their previous motor insurance cover expired.

Sunday-ThomasThese uninsured vehicle owners have violated the Federal Roads Safety Corp (FRSC) Act which mandates all vehicles on Nigerian roads to carry at least third party motor insurance policy.Third Party Vehicle Insurance comes at a fixed price of N5, 000 for privately used saloons and SUVs, while commercially used vehicles are charged N7,500 and N5,000 in some cases. headtopics.com

Using the N5,000 insurance valuation which each vehicle should at least carry, the insurance industry can recoup N50 billion premium income annually if all the 10 million vehicle owners could be compelled to have genuine insurance certificates.Low enforcement of compulsory motor insurance, according to market observers, has been responsible for insurance apathy of road users.

ADVERTISEMENTTo recoup the N50billion, LEADERSHIP learnt that insurance operators under the auspices of the Nigerian Insurers Association (NIA) had in the past engaged Lagos State government on enforcement of motor insurance through its licensing offices.

Similarly, they were already discussing with Kaduna, Niger, Kogi and Ogun States to ensure that motorists get genuine insurance cover at the point of renewing their vehicle particulars at licensing offices across the aforementioned states.Corroborating the development at the weekend, chairman of NIA, Ganiyu Musa, said the industry is embittered about what it is losing to insurance racketeers and non-insurance of vehicles.

He disclosed that the association, on behalf of the insurance industry, is engaging five states with plans to extend to other states as time progresses.“We are also working closely with the state vehicle inspection service on enforcement of Third Party Motor Insurance in the states. We are engaging Niger, Kaduna, Kogi and Ogun States, and remain hopeful that other states will see value in the platform and embrace it. Out of the estimated 13million vehicles in Nigeria only about 2,939,767 Third Party Motor policies are in force as of April 26, 2021,” he noted. headtopics.com

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Musa, who is also the group managing director/CEO of Cornerstone Insurance Plc, disclosed that the association is also partnering the Federal Roads Safety Corps (FRSC) and the police to give them access to the Nigerian Insurance Industry Portal (NIIP), such that when a vehicle is apprehended, they can assess whether such vehicle carries fake or genuine insurance certificates.

Also, the president of Nigerian Council of Registered Insurance Brokers (NCRIB), Dr Bola Onigbogi, explained the benefits of third party motor insurance certificate, saying the fracas on Nigerian roads over minor accidents could be avoided if most road users knew the value of the third party insurance certificates they are holding.

“In the end, the two vehicles involved in such an accident will sort themselves out or the vehicle owner will decide to fund the repair of his vehicle himself when in the real sense they can exchange their respective third party insurance certificates to fix their vehicles,” she pointed out.

She said a third party, as the name implies, does not cover the carrier, but covers other road users.Onigbogi continued: “Motor (third party) insurance covers the insured legal liabilities for death and bodily injuries to third parties and third party property damage. While remedies for body injuries and death are unlimited since we cannot put value on life, the limit for third party property damage is N1million. headtopics.com

“In the event where an accident would likely lead to a claim, the policy holder, through his broker or in person, if he has no broker, must notify the underwriter as soon as possible. His responsibility is to describe what happened. It is not his responsibility to accept liability for the loss. That is for the underwriter to determine based on the account of the accident by the policy holder.

“If you have third party motor insurance, immediately you are involved in an accident, your insurer will pay third party claims to the tune of N1 million for a N5,000 premium.“So, if you hit somebody’s car from the rear, you need not to worry. Just say, ‘I am sorry; it’s a mistake’, to the driver. Tell him, ‘This is my insurance cover; my insurance broker will call you and fix it.’ And within a week, the damaged car will be repaired.”

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Meanwhile, the director-general, NIA, Mrs Yetunde Ilori, has warned motorists with fake vehicle certificates not to expect claims when an accident happens.He urged vehicle owners to confirm the genuineness of their insurance coverage by dialing56511# on their phones.

Read more: LEADERSHIP Newspaper »

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