Evaluating success story of ECOWAS Brown Card

To make sure insurance coverage cowl for travellers throughout borders, the ECOWAS Brown Card initiative was put in place to allow victims obtain insurance coverage claims within the occasion of an accident. A glance again on the scheme reveal one thing to be happy with. SUNDAY OJEME studies

The ECOWAS Brown Card Insurance coverage Scheme was established on Could 19, 1982, following the creation of the Financial Group of West African States (ECOWAS). It was designed as a typical scheme for the settlement of claims arising from accidents in the middle of the free motion of products and individuals inside the ECOWAS sub-region.

Goal

The Brown Card Scheme facilitates immediate and truthful settlement of claims to highway accident victims brought on by motorist exterior their nation of residence. As well as, the scheme facilitates and gives monetary assure to Ecowas Group Motorists and their autos inside the sub-region. This scheme is just like the Inexperienced Card In Europe.

The scheme operates by 14 (fourteen) Nationwide Bureaux of Member State and the Nationwide Bureau in every member state ensures the supply of Brown Card for native motorists, conducts investigations and settles claims arising from an accident brought on by holders of Brown Card. It then acts as an issuing and Dealing with Bureau.

Challenges

Within the years after inception, the scheme has been confronted with challenges of funding, structural inadequacies and many others. In 2016, the Technical Committee of ECOWAS Fee in collaboration with the Council of Bureaux, launched Automated Ecowas Brown Card as a panacea to the quite a few challenges of the Brown Card Scheme.

In addressing these challenges, the next have been put in place: A harmonised format for all Nationwide Bureaux was established. ECOWAS Brown Card was adopted as a specialised establishment of the ECOWAS Fee.

Automated Brown Card

Automated Ecowas Brown Card was launched and made obligatory for all autos inside the ECOWAS House. Certainly, the adoption of the Automated Ecowas Brown card made it a variable driver of financial progress and integration inside the ECOWAS house.

The Automated Brown Card additional enhanced: The Influx of funds generated will serve the curiosity of all stakeholders; most specifically the Insurance coverage Corporations and supply enough Assets to impact Truthful and Immediate Cost of Claims – a key goal of the scheme.

The operators funding and capability to carry out their function, harmonised Motor Car Third Get together legal responsibility legal guidelines and compensation regime in numerous states and truthful and immediate cost of Third- Get together Worldwide claims arising from ECOWAS Danger involving Legal responsibility for loss of life, property harm and bodily Harm, incurred whether or not an Insured car is inside or exterior the shores of the nation the place the motorist resides.

Though the Automated Brown Card regime is but to be adopted in Nigeria, in response to the Secretary Normal, Nigerian Nationwide Bureau; Mrs Henrietta Anyanna, the scheme has and is fulfilling the aim for its institution and has the capability to unlock the total potential of the motor insurance coverage trade if the sources are judiciously managed. She drew consideration to the fact that claims value over N84 million have been paid to Nigerian Third-Get together victims of accidents as at December 31, 2021, even within the absence of an Automated Ecowas Brown Card regime. “Think about what the state of affairs can be like, after the official implementation of the Automated Brown Card in Nigeria.”

The scheme is placing smiles on the faces of victims in addition to reworking lives of the much less privileged ceaselessly, she mentioned. Motorists have a psychological freedom from fears that they might be assailed in case of accident in a rustic completely different from their nation of residence.

Additionally, motorist lined by the scheme are effectively handled as if the fundamental insurance coverage coverage have been underwritten with an organization working within the nation visited by the motorist or by which he/she is transiting.

Success story

Moreover, to intensify the successes of the scheme, a complete of three,442 cross-border declare circumstances have been efficiently dealt with and settled within the 12 months 2022 alone. On the First Zonal Assembly of the Scheme in Could 2022, in Conakry, an quantity of over 500,000,000 FCFA (N334 million) was recorded as compensation to 3rd get together victims of highway accident.

Ganiyu Musa, wears two hats. He’s the Chairman, Nigeria Nationwide Bureau in addition to the Chairman of the Council of Bureaux. Please permit me to reiterate the truth that Nigeria has the biggest market within the ECOWAS house with 22 member corporations presently.

The implementation of Automated Ecowas Brown Card will deliver on board all Motor Insurance coverage Underwriting corporations. This Implies, that your native Insurance coverage cowl can be issued together with a Brown Card cowl to make sure the ECOWAS Danger we’re uncovered to.

This case could be addressed additional with the on-going automation of the issuance of the ECOWAS Brown Playing cards. Different laudable pursuits for the scheme earlier than the top of Nigeria’s tenure as chairman, Mr. Ganiyu Musa, drives to arrange a structured Database for Info retrieval that can fast-track Claims Cost, harmonise the structure of your complete scheme and its compensation regime, in addition to set-up a cross-border regulatory physique.

Globally, ECOWAS Brown Card Insurance coverage Scheme stands to play a big function in addition to positively impression the African Continental Free Commerce. It’s attention-grabbing to notice that the free-trade space is the biggest on the earth; for the reason that formation of the World Commerce Organisation.

The foremost function of the settlement is to create a single continent-wide marketplace for items and companies and to advertise the motion of capital and naturally, individuals. Thus, the necessity for Brown Card Cowl is supported by different regional schemes resembling: Yellow Card Scheme of the Jap & Southern African Area, Pink Card Scheme in Central African Area and Orange Card for the North African sub-region.

Regardless of the challenges, the scheme has achieved large success within the promotion of free motion of individuals, items and companies inside the ECOWAS house. The laudable initiatives undertaken to this point is geared in the direction of reworking the scheme to boost its significance on the worldwide scene. Insurance coverage penetration continues to deepen inside the ECOWAS house whereas enhancing the spirit of cooperation and brotherhood amongst Head of States and Governments.

Final line

The Brown Card Scheme is driving financial growth in addition to enhancing the social normal of the folks, integration of Member States, whereas reworking the Insurance coverage Trade inside the ECOWAS house within the curiosity of all stakeholders.