Insurance industry lost over N50bn yearly premium income to racketeers

Worried by the loss of over N50 billion yearly in premium income to insurance racketeers and non-insurance vehicles, the Nigerian Insurers Association (NIA) has engaged five state governments with a view to reducing the rate of fake motor insurance in the country.

The chairman of the Association, Ganiyu Musa, at a press briefing in Lagos lamented that out of the estimated 13 million vehicles in Nigeria, only about 2,939,767 Third Party Motor Policy are in force as at April this year.

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As a result, to increase the premium income of the insurance industry, underwriting firms under the auspices of the NIA have engaged Lagos State in the past on enforcement of motor insurance through their licensing offices.

Besides, there are already ongoing engagements with Kaduna, Niger, Kogi and Ogun States to ensure that motorists get genuine vehicle particulars at licensing offices.

He said the industry is embittered about what it is losing to insurance racketeers and non-insurance of vehicles, disclosing that, the association, on behalf of the insurance industry, is engaging five states with plans to extend to other states as the time progresses.

According to him, “we are also working closely with the state vehicle Inspection service on enforcement of Third Party Motor Insurance in the state. We are also engaging Niger, Kaduna, Kogi and Ogun States, and remain hopeful that other states will see value in the platform and embrace it. Out of the estimated 13 million vehicles in Nigeria, only about 2,939,767 Third Party Motor policies are in force as at Apr 26, 2021.”

Musa, who is also the group managing director/CEO of Cornerstone Insurance Plc, disclosed that the association is also partnering the Federal Roads Safety Corps(FRSC) and the police to give them access to the Nigerian Insurance Industry Portal(NIIP), such that, when a vehicle is apprehended, they can assess whether such vehicle carries fake or genuine insurance certificates.

Speaking on the Nigerian Insurance Industry Database /Nigerian Insurance Industry Portal (NIID/NIIP), Musa said: “The Nigerian Insurance Industry database was established to reduce soft market practices and eliminate fake insurance policies. The Association has taken a step further by creating the Nigerian Insurance Industry platform to enable vehicle owners purchase their third-party motor vehicle insurance cover from the comfort of their homes and telephones. So far, we are seeing a lot of traction on the platform across the states of the Federation and we are hopeful that other states will key into the project before the end of the year.”

On the Marine Module, he said: “As you are probably aware, the Central Bank of Nigeria has since integrated the NIA Marine Module into the National Trade portal and all insurance certificates required for import and export are generated from the Portal. This, no doubt, signals the end of fake Marine Insurance Certificates at the Ports.”

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