Meanwhile, the Nigeria Insurers Association (NIA) has disclosed that 5.8
million out of the 11.7 million registered vehicles plying Nigerian
roads have fake insurance......
On the other hand, only 5.9 million Nigerian vehicles have genuine insurance certificates.
These figures, captured by the Nigerian Insurance Industry Database (NIID) of the NIA, were made available to THISDAY yesterday.
The NIA said 5.9 million vehicles with genuine insurance, were those
that purchased their insurance policies from licensed insurance
companies and are eligible to claims in the event of eventualities.
The National Bureau of Statistics (NBS) in its latest report on road transport had put the number of registered vehicles plying Nigerian roads at 11.7 million.
The National Bureau of Statistics (NBS) in its latest report on road transport had put the number of registered vehicles plying Nigerian roads at 11.7 million.
The NIID is the central database for all
insured vehicles. It also serves as a tool to ensure that only insured
vehicles are driven on Nigerian roads and helps to checkmate the
activities of fake insurance operators.
The premium generated by various policies underwritten by the industry showed that the contribution by motor insurance has been fluctuating.
The premium generated by various policies underwritten by the industry showed that the contribution by motor insurance has been fluctuating.
For instance, NIA figures showed that in
2010, overall premium from motor insurance for the industry stood at
N42 billion in 2011, rose to N45 billion in 2012 and was N45 billion in
2013 and declined further toN43billion in 2014, N40 billion in 2015 and
N40 billion 2016
The Immediate past Chairman of NIA, Mr Eddie Efekoha, in a chat with THISDAY, confirmed that less than six million vehicles currently have genuine insurance certificates.
The Immediate past Chairman of NIA, Mr Eddie Efekoha, in a chat with THISDAY, confirmed that less than six million vehicles currently have genuine insurance certificates.
He said the association was working towards ensuring that in no distant
time, loopholes through which insurance companies lose premiums are
blocked.
Efekoha said efforts were being made by
the association to extend the NIID to marine insurance to curb the
activities of fake marine insurance certificate sellers as well.
He said motor insurance policy alone was capable of growing the insurance sector’s contribution to the Gross Domestic Product (GDP) of the economy, if the right premiums are charged and it goes to genuine operators’ coffer.
He said motor insurance policy alone was capable of growing the insurance sector’s contribution to the Gross Domestic Product (GDP) of the economy, if the right premiums are charged and it goes to genuine operators’ coffer.
He said the volume of businesses that
were underwritten by the industry grew from N315.96 billion in 2016, to
N363 billion in 2017. This represented an increase of 15 per cent, just
as he anticipated that given the recent collaboration between operators
and the industry regulator in various initiatives to deepen insurance
penetration, there would be increase in both volume of business to be
underwritten and premium generated this year.
He said out of the above figure, motor insurance was one of the policies
that made significant contribution to the total premium generated by
the industry.
Meanwhile given this debut made by the
industry in the use of NIID to curb activities of fake motor insurance
certificate sellers, the industry has been urged to replicate same in
marine insurance to curb the menace of fake marine insurance sellers.
The Executive Director, Leadway Insurance, Mr. Adetola Adegbayi,
said this would bring about reduction in fake marine insurance
certificates.
Adebgayi observed that marine insurance class of business in Nigeria had suffered serious neglect and malpractices.
Adebgayi observed that marine insurance class of business in Nigeria had suffered serious neglect and malpractices.
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