The Nigerian Police lately commenced the enforcement of third-party automobile insurance coverage, with defaulters prone to pay as much as N250,000 if caught.
This enforcement appears to be more practical in Lagos, Akwa Ibom and Edo states, whereas the Federal Highway Security Corps (FRSC) and the Nigeria Police in Anambra, Ebonyi and Enugu states have urged motorists to make sure compliance with the Third Celebration Car Insurance coverage or face the wrath of the regulation.
In December 2022, the Nationwide Insurance coverage Fee (NAICOM) raised third-party premium insurance coverage charges for motorists from N5,000 to N15,000.
In an unique interview with Nairametrics, Insurance coverage Professional, Kemi Adeyeye, explains what might be the explanation some automobile house owners look like bored with renewing their automobile insurance coverage amongst different attention-grabbing views.
Nairametrics: What ought to Nigerians find out about insurance coverage?
Kemi Adeyeye: Insurance coverage is a monetary safety that helps to handle threat and uncertainty. Insurance coverage additionally offers most safety and security towards any surprising occasions equivalent to accidents, theft, pure disasters and even demise.
We now have so many varieties of insurance coverage. We now have auto insurance coverage which is motor insurance coverage, and it’s divided into two. We now have the conventional insurance coverage which we name ‘third celebration’ that permits individuals to maneuver round. It is a crucial insurance coverage that it is best to have.
However if you wish to give your automotive a canopy, and most safety, you’ll need to get a complete bundle to your automotive. So, in case of an accident, unintended harm on the highway or harm to your automotive, you might be nicely coated.
In case you even trigger harm to a 3rd celebration, by the point you might have this bundle of complete cowl, the insurance coverage firm will cater for the bills. Both damages to the automotive, theft or loss and even bodily harm to a 3rd celebration. So, you might have a variety of cowl to get pleasure from by the point you subscribe to the excellent bundle.
The third-party additionally has a canopy too. However it is not going to be in your automotive. Will probably be for the third celebration if there’s any harm attributable to your automotive to the opposite automotive.
Nairametrics: We all know that most individuals do third-party automotive insurance coverage greater than the excellent. Communicate to us extra in regards to the third celebration automotive insurance coverage.
Kemi Adeyeye: Usually, you already know it’s obligatory so that you can have a 3rd celebration in your automotive, which is obligatory for each automobile proprietor in Nigeria. You are supposed to renew it yearly, however the declare on it is not going to be to your personal automotive.
The third celebration advantages from the duvet. In my very own firm, in the event you do a 3rd celebration with us, you might be to get pleasure from a minimal of 1 million naira yearly.
Only one N1 million on third celebration automotive, not on yours. In case you hit the opposite individual’s automotive, my firm is supposed to restore the individual’s automotive, not your personal automotive.
And if such incidents happen, you are supposed to take footage of your automotive and the opposite individual’s automotive.
Nairametrics: This third celebration insurance coverage, are individuals actually claiming it?
Kemi Adeyeye: Sure it’s actually working. However individuals will assume, ‘Oh, I might not wish to disturb myself, I might not wish to stress myself’. They imagine the insurance coverage firm is not going to pay. That’s their mindset. However I need to inform you that the mindset is flawed, my very own firm can pay for third celebration in case of any damages, or any unexpected occurrences if it occur.
In case you do your third celebration on the proper place, you’ll be able to name for a declare anytime. As soon as you already know the agent that renews your automotive insurance coverage, high-quality. Even in the event you don’t know the agent that renews your automotive insurance coverage, you’ll be able to equally stroll into the workplace, after which name to your declare. It’s your proper.
Nairametrics: Because the authorities commenced enforcement, Is there a surge within the variety of third celebration insurance coverage registration?
Kemi Adeyeye: Probably not a surge, however many individuals at the moment are renewing their expired insurance coverage coverage, they’re afraid of falling sufferer. However many individuals are nonetheless discovering it troublesome to pay that N15,000.
Nairametrics: Is there any distinction between the third-party insurance coverage of right this moment in comparison with the one which has at all times been?
Kemi Adeyeye: There isn’t any distinction, it’s nonetheless the identical third-party insurance coverage. The one factor that modified is the rise within the cash which rose to about 200% from N5,000 to N15,000
Nairametrics: The federal government is now clamping down on defaulters, with a possible high-quality of about N250k, is that truthful?
Kemi Adeyeye: You understand most Nigerians, if they aren’t put beneath stress, they received’t do the suitable factor. If authorities don’t implement this factor, many individuals will simply overlook it. I can inform you there are tons of of 1000’s of vehicles on Nigerian roads day by day with out insurance coverage protection, and that’s not good for anybody together with different highway customers. So the federal government has to do what it has to do.
Nairametrics: Why do you assume some automobile house owners refused to resume their automobile insurance coverage?
Kemi Adeyeye: I feel there are two main causes in my view. The primary could also be on account of the large enhance from N5k to N15k. You understand the financial scenario of the nation is already powerful. The second motive could also be as a result of most Nigerians are complacent, they don’t see the necessity for it as they see it as a waste of cash. However we’re doing our greatest to teach them and issues are bettering step by step.
Nairametrics: How lengthy does it take to course of a third-party insurance coverage declare?
Kemi Adeyeye: Not less than, let me say two weeks, between one to 2 weeks you might be getting your declare performed. In my very own firm, once you submit your declare to us, and we’re capable of make our findings and are certain that this factor actually occurred, my very own firm doesn’t take time, we reply to the declare asap.
Nairametrics: What number of occasions in a 12 months are you able to request a declare? You stated third-party insurance coverage covers as much as N1 million per 12 months proper?
Kemi Adeyeye: On third celebration, sure. So if that exact broken automotive takes N400k to repair, then the individual nonetheless has N600k for that 12 months earlier than the top of the coverage.
Nairametrics: As an insurance coverage knowledgeable, what’s the main problem you face in your day-to-day work?
Kemi Adeyeye: We now have lots of people in Nigeria as of right this moment which are nonetheless but to imagine that insurance coverage is nice, that is additionally one of many causes the federal government is now implementing it. However every so often, we carry on telling them that no, insurance coverage is definitely working.
I’ve met with somebody at a VIO workplace. I truly wished to market the person, however he instructed me he doesn’t do third-party insurance coverage. He does complete. I used to be like, ah, wow.
However what we face day by day is individuals will nonetheless inform you insurance coverage is just not working in Nigeria. ‘Ah, no, I can’t insure my automotive. I can solely do that third celebration of it, you already know, and that’s all.
Nairametrics: So we now have talked so much about third celebration insurance coverage. I need you to clarify the distinction between that and complete automotive insurance coverage.
Kemi Adeyeye: Complete insurance coverage is an excellent plan to have in your automotive. It is going to truly offer you peace of thoughts. In contrast to a 3rd celebration that doesn’t have a canopy on tax, Within the case of a complete bundle, we now have what we name tax.
If something occurs to your automotive that’s value N5 million, as an illustration, you might be paying simply 5% of the value of the automotive. Let’s assume the automotive is stolen or one thing, the insurance coverage firm is available in to provide the cowl for the harm.
If the automotive is stolen, the insurance coverage firm will substitute it both in money or if you’d like us to get you the automotive. So, complete covers each my automotive and the third celebration’s automotive.
Nairametrics: Is there an extent of harm a automotive ought to get to earlier than any individual can say, I need my insurance coverage firm to repair this? Both third celebration or complete.
Kemi Adeyeye: Something you consider. You’ve paid to your service. So, anytime, any day you might be welcome. Even when it’s a scratch of N10,000, It’s cash. So, you simply take the image of that half, ship it to me otherwise you take it to the insurance coverage firm that insured your automotive for you, after which the invoice can be sorted.
Nairametrics: We now have been speaking about automotive insurance coverage, apart from that, what different insurance coverage are there in Nigeria?
Kemi Adeyeye: Property insurance coverage, individuals try this. We additionally do fireplace and housebreaking. Lots of insurance coverage. We even have medical health insurance. That one is even obligatory for individuals touring outdoors the nation.
Then we even have the financial savings plan that can assist one to plan for the long run both a pension for your self or to your youngsters for his or her future goal.
