Although it’s necessary for all autos to have a minimal of third occasion motor insurance coverage certificates, there was a decline within the variety of autos with real insurance coverage certificates on Nigerian roads, NIKE POPOOLA experiences
The variety of autos with faux certificates on Nigerian roads rose to 9.04 million in response to newest figures obtained by our correspondent.
Figures obtained from the Nigerian Insurers Affiliation revealed that solely 2.72 million autos on Nigerian roads had legitimate insurance coverage covers as of February.
Additionally, newest knowledge from the Nationwide Bureau of Statistics estimated Nigeria’s automobile inhabitants at 11.76 million.
The NIA had in February 2016 disclosed that about 4.3 million autos had been registered on its Nigerian Insurance coverage Trade Information.
In January 2019, the affiliation revealed that simply over three million autos had been nonetheless on its NIID, which confirmed an rising variety of faux certificates on Nigerian roads.
The targets of the NIID are to supply qualitative statistics/evaluation of the business knowledge as a automobile for simple verification of real insurance coverage certificates by all stakeholders.
It additionally seeks to scale back incidents of fraudulent insurance coverage transactions particularly for autos.
The platform was enhanced to incorporate info to assist get better stolen autos and claims reporting modules.
The Insurance coverage Act 2003 mandates all motorists to have a minimal of third occasion motor insurance coverage coverage in place.
Part 68 of the 2003 Insurance coverage Act says, “No particular person shall use or trigger or allow some other particular person to make use of a motorized vehicle on a highway until a legal responsibility which he could thereby incur in respect of injury to the property of third events is insured with an insurer registered beneath this Act.”
It additional explains that the insurance coverage of this part covers legal responsibility of not lower than N1m.
In line with the Act, an individual who contravenes the provisions of this part commits an offence and is liable on conviction to a tremendous of N250,000 or imprisonment for one 12 months or each.
Although the statutory legal guidelines of the nation stipulate that no motorist ought to transfer on Nigerian roads with out being in possession of real insurance coverage certificates, most motorists have continued to point out absolute disregard for this statutory requirement.
As a part of its enlightenment initiatives, the NIA said in its final annual report, “The affiliation carried out a marketing campaign tagged, ‘Wetin you carry’ to advertise third occasion motor insurance coverage uptake amongst motorists in Lagos.
It stated it additionally participated actively within the workshop of Car Insurance coverage Officers from the 36 states of the federation and the Federal Capital Territory which was held in Lagos.
The Commissioner for Insurance coverage, Mr Sunday Thomas, stated the business was decreasing ‘Incidence of pretend insurance coverage by way of deployment of requisite expertise and collaboration with regulation enforcement businesses’.
Thomas expressed concern over the focus of insurance coverage corporations and brokerage companies in main cities and their reliance on authorities accounts, stressing that there wouldn’t be efficient enforcement of obligatory insurances within the hinterland with poor presence of underwriting and brokerage companies there.
He urged insurance coverage brokers to ascertain their presence in all of the nooks and crannies of the nation to speed up insurance coverage penetration and monetary inclusion.
Thomas stated the imaginative and prescient to have the nation’s vital inhabitants settle for and patronise insurance coverage companies would solely be achieved if brokers who had been skilled intermediaries prolonged extra of their operations to distant areas of the nation, reasonably than city areas.
The Chairman, Mutual Advantages Assurance Plc, Dr Akin Ogunbiyi, stated it was necessary for the operators to collectively work collectively to make sure extra autos had been insured.
He stated, “You already know that 70 per cent of third occasion insurance coverage in Nigeria are faux and the cash goes to the boys who promote them.
“We should always come collectively beneath the umbrella of NIA and spend money on sources to benefit from all alternatives.”
He apprehensive that hundreds of thousands of autos, vehicles and bikes on Nigerian roads weren’t insured.
In line with him, it will be significant for the operators to ship worth for individuals to see the advantages of insurance coverage and voluntarily embrace it.
Nonetheless, to drive insurance coverage penetration and improve variety of autos taking acceptable insurance coverage covers, some underwriters have continued to give you progressive merchandise to woo motorists.
Common Insurance coverage Plc stated it was dedicated to driving insurance coverage penetration within the nation by way of the introduction of progressive merchandise.
The agency stated its third-party fireplace and theft insurance coverage ‘covers third-party property harm, third-party loss of life and bodily damage, third-party medical remedy prices, theft or tried theft of the insured automobile and fireplace harm to the insured automobile’.
Whereas explaining it was including worth to the duvet, it stated the third-party motor insurance coverage supplies advantages within the occasion of loss of life or bodily damage to a 3rd occasion arising from the usage of the insured automotive and harm to property aside from property belonging to the insured.
Additionally, one other insurer, Allianz Nigeria launched 15 per cent premium cashback bonus to purchasers who didn’t have a declare after insuring for twenty-four months in a row.
The Managing Director, Consolidated Hallmark, Mr Eddie Efekoha, stated the corporate would proceed to extend accessibility and ship enhanced motor insurance coverage companies with this expertise.
Sunu Assurances launched the cell insurance coverage answer to allow motorists buy genuine third-party auto insurance coverage with the usage of their cellphones in lower than 5 minutes.
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