NAICOM, Road Transport Service collaborate to end fake motor insurance
L-R: Commissioner for Insurance/Chief Executive Officer of the National Insurance Commission, Mr. Sunday Thomas, paid a courtesy visit on the Director, Road Transport Service, FCTA Dr. Bello Abdul-Lateef.
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The National Insurance Commission (NAICOM) is working with the Road Transport Service to end fake third party motor insurance in the country.
NAICOM disclosed this in a statement, when the Commissioner for Insurance/Chief Executive Officer of the National Insurance Commission, NAICOM Mr. Sunday Thomas, on Wednesday 3rd April, 2024, paid a courtesy visit on the Director, Road Transport Service, FCTA Dr. Bello Abdul-Lateef.
The purpose of the visit was to formally explore areas of collaboration with regards to curbing instances were persons circumvent the system by paying lower premium than expected.
NAICOM also sought collaboration on how to end the menace of fake Third (3rd) Party Motor Insurance.
The Director, DRTS, noted that a lot of individuals renewing their vehicle particulars were not getting value for the insurance premium being paid, as they did not validate the insurance policies after purchase, even though they might have paid N15,000, whereas the cover they were actually given costs N4,000.
This was considering the fact that they may have engaged unauthorised persons to help process their request.
The Director, DRTS further mentioned they are now leveraging technology to curb such issues, and that 98 per cent of its processes are now automated.
In addition, he stated that individuals can commence the process of their vehicle particulars renewal from the comfort of their homes.
The Commissioner for Insurance also informed the Director, DRTS on the enhanced third-party Motor Insurance which became effective 2nd January, 2023, increasing its premium from N5,000 to N15,000 and also its benefits from N1m to N3m covers respectively for the protection of road users.
In his closing remark, the Commissioner mentioned that effective collaboration between NAICOM and DRTS will help reduce the incidences of Third-party motor insurance irregularity by enhancing active policing to ensure adequate Insurance management system.
