Dr Samuel Onyeka, an insurance coverage guide, has backed the upward evaluate of the third-party motor insurance coverage premium by the Nationwide Insurance coverage Fee (NAICOM).
Onyeka, the Director, of Clear Safety Ltd. (TPL)/Gte, a Non-Governmental Organisation (NGO), mentioned that the evaluate would assist curb faux insurance coverage and facilitate claims fee by insurance coverage firms.
The Information Company of Nigeria (NAN) remembers that NAICOM had in December, launched a round for the evaluate from N5,000 to N15,000 for third-party motor insurance coverage premiums for personal autos, efficient Jan. 1.
The insurance coverage skilled mentioned that opposite to views that it was not the proper time for the rise; the evaluate would assist the business operate successfully.
“There is no such thing as a jurisdiction on the planet the place property insurance coverage is bought for N5,000.
“The explanation why we have now not had insurance coverage firms settling claims in relation to third-party coverage is due to lack of funds.
“When the insurance coverage firms don’t settle claims as a result of they don’t have cash, you’ve got lots of people hawking faux insurance coverage certificates however when insurers start to take accountability to problem insurance policies which they know that they are going to settle claims, the issues will cut back.
“And NAICOM is able to implement, then, it would make it simpler to stamp out faux insurance coverage.
“The enterprise of insurance coverage is designed in a means that the insurer collects premiums and settles claims from the premium collected.
“For the insurer to have the ability to settle claims, the premium collected have to be so vital that it’ll cowl the danger premium (the quantity to pay within the occasion of a loss).
“If insurance coverage firms within the nation will settle third-party claims, they have to be capable to construct their premium base,’’ Onyeka mentioned.
He listed among the issues lined by the third-party insurance coverage together with life, bodily accidents and property harm.
Onyeka mentioned the brand new charges additionally lined the ECOWAS brown card safety which offered motorists assure of immediate compensation for any accident brought about outdoors their recurring residence.
In line with him, it is a win-win scenario for motorists.
He urged motorists to buy third-party motor insurance coverage insurance policies from registered insurance coverage firms to keep away from points within the occasion of an accident or loss.
“We predict that what NAICOM has accomplished is a step in the proper path,’’ he mentioned.
TPL/Gte is an NGO created to foster the event of the insurance coverage sector within the nation.
