NAICOM, DRTS partner to address issue of fake Third Party Motor insurance

The Commissioner for Insurance/Chief Executive Officer of the National Insurance Commission, NAICOM Mr. Olorundare 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, according to the commission was to formally explore areas of collaboration with regards curbing:
1. Instances were persons circumvent the system by paying lower premium than expected.
2. The issue of “FAKE” Third (3rd) Party Motor Insurance
Receiving the commissioner, 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 cost N4,000 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% 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 N1,000,000 to N3,000,000 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.