12 Million Motorists Carry Fake Vehicle Insurance Policy —Survey •Senate To Probe It
The Senate has directed its Committee on Banking, Insurance and Other Financial Institutions to organise a public hearing to investigate a current survey which revealed that over 12 million vehicles insurance policy in circulation are fake.
The Nigerian Tribune learnt the committee would equally invite stakeholders and experts in the insurance sector of the economy to rub minds on ways at ensuring the implementation and compliance with the six compulsory insurance schemes as provided in the Act The committee is mandated to submit its report within two weeks.
This followed a motion by Senator Ahmed Ogembe (PDP Kogi Central Senatorial) titled: “the implementation of the Compulsory Insurance in Nigeria as provided in the Insurance Act and Regulation, 2003”.
Ogembe in the motion informed that at a recent research in his possession out of the 16 million vehicles in Nigeria, only four million were properly insured.
The lawmaker explained that section 3(a) (b), section 4(1-4) of the Insurance ACT, 2003, expressly provides the conditions for the registration of an insurance company in Nigeria, adding that yet, the provisions were frequently flouted.
He added that there are currently 58 insurance companies registered with the National Insurance Commission, noting that there were uncountable numbers of unregistered insurance institutions selling worthless insurance certificates to unsuspecting members of the public.
According to him, “This reprehensible act is mostly manifest in the third party motor/vehicle insurance scheme where such unregistered institutions connive with relevant law enforcement agencies to perpetrate their act.”
Ogembe noted with concern the staggering number of Nigerians who sought for help for various reasons including mishaps at workplace, illnesses traceable to occupational hazards, debilitating injuries and even death as a result of motor accidents.
The insurance schemes, according to him, are made mandatory to take care of third party liabilities arising from the actions or inaction of a person, group or organisations in the course of their activities.
He stated that the country was grossly under-insured, adding that basically its citizens do not take advantage of services rendered by this very important sector of the economy as a result of many reasons.
Ogembe made it known that injuries and death usually arose from building collapse, despite the “Building under construction Insurance” and the “Public Building Insurance” as provided in the Insurance and Regulation Act, 2003.
He prayed the Senate to mandate its committee on Banking, Insurance and other financial institutions to invite all stakeholders in the insurance sector, such as the National Insurance Commission, Registered Insurance Companies in Nigeria, Relevant Law enforcement agencies (FRSC, VIO).
Culled from The Nigerian Tribune