22nd July, 2010
Managing Consultant, Newsletters Limited, Dr. Oscar Odiboh, a player in the auto industry, has called on relevant government agencies to beam their searchlight on auto insurance companies in the country, saying there are more fraudulent practices which have denied government of accruable revenue in the auto industry.
He noted that for instance, statistics have shown that automobile insurance in Nigeria is currently valued as a N10 billion annual business net worth in terms of actual and potential deals, while 70 per cent of peopleâ€™s expenditure on automobile insurance goes into wrong pockets.
This, he said, meant that lots of money change hands daily and annually and some of the money, he noted, goes to faceless insurance agents without fixed addresses; without identifiable bankers; with cash and carry mentality; and sometimes, undercover proxies of established and well-known insurance companies.
He also noted that 80 per cent of automobile insurance documents are fake, coming from sources that are not genuine, and which no motoring agency has taken measures to investigate, bemoaning that many Nigerians have also been gullible enough to accept these documents over the years.
On how to curb the menace, he advised that all auto insurance companies should submit themselves for rescreening by regulatory authorities, saying that activities of auto insurance companies; their documentation processes, must undergo a form of reassessment by all stakeholders in the automobile industry. He said the names, addresses, owners, and other essential information of auto insurance companies must be published periodically by the relevant agencies of government in order to bring sane, purposeful and beneficial transactions into the system.
He also called on motoring journalists in the country to pay greater attention to the activities of motor insurance companies; monitor and report developments in the segment, and continuously provide the right information that would encourage Nigerians to insure their vehicles without any form of exploitation or deception.