In a move aimed at sanitising the insurance sector, the National Insurance Commission (NAICOM) is closing ranks with the Federal Capital Territory Administration (FCTA) to eliminate bad practices.
To this end, the Commissioner for Insurance/Chief Executive Officer of NAICOM, Mr. Olorundare Thomas on Wednesday paid a courtesy visit to the Director, Road Transport Service, FCTA Dr. Bello Abdul-Lateef.
Top of the agenda is working out a sustainable blueprint that will formally explore areas of collaboration with regards to curbing instances where persons circumvent the system by paying lower premiums than expected.
Another matter is urgently addressing the issuance of “fake” Third (3rd) Party Motor Insurance.
Speaking during the encounter, the Commissioner for Insurance 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 its benefits from N1,000,000 to N3,000,000 covers for the protection of road users.
The Commissioner also noted that effective collaboration between NAICOM and DRTS will help reduce the incidences of Third-party motor insurance irregularity by enhancing active policing to ensure an adequate insurance management system.
In his remarks, 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 stated that 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.