N5000 Third Party Motor Insurance for review

Two of the damaged cars in the accident on ACME Road, Ogba (1)

Damaged vehicles on the road: Third Party Insurance for review

Damaged vehicles on the road: Third Party Insurance for review
Damaged vehicles on the road: Third Party Insurance for review

By Rukayat Adeyemi

National Insurance Commission and insurance operators have started talks on reviewing the Third Party Motor Insurance.

Holders pay N5,000 to procure the insurance.

But operators said it was time for a review.

Vice -Chairman, Sub-Committee , Publicity and Communication Sub-Committee, Mrs Ebelechukwu Nwachukwu, said that this was part of the fallout of the Insurers Committee meeting held in Lagos.

Nwachukwu, also the Managing Director, NSIA Insurance Company, said the Commissioner of Insurance, Mr Sunday Thomas, following a reactivation of the Insurers Committee, directed it to determine the adequacy of the current premium for the third-party motor insurance policy .

” The committee has received the permission of NAICOM to review and determine the adequacy of the current premium for the third-party motor insurance policy.

” When you have a third-party policy, it is necessary that you revisit it from time to time, so the technical and actuarial professionals will start working on that,” she said.

The Insurers Committee also announced Federal Government’s plans to insure all its assets across the federation.

Nwachukwu explained that representatives from the Ministry of Finance were at the meeting to inform the regulator and operators of the development.

“The representative of the Ministry of Finance spoke to us on the willingness and readiness of the federal government to insure all its assets.

“As a result of the development, we are going to be having a meeting between the industry and the Ministry of Finance to discuss all the modalities and guidelines.

“Our discussion will address issues around data, premium payment , amongst others, ” she said.

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According to her, the industry is excited that the government was paying attention to insuring its assets and sustain the culture, as this would set a positive pace .

The managing director hinted that the insurers committee have also agreed to scale up the ECOWAS Brown card by going into automatic issuance in Nigeria .

” Issues around enforcement of the brown card issuance and lots of issues around the claims that have occured for people who have it were also discussed extensively, ” she said.

The Sub-Committee Vice -Chairman revealed that NAICOM also charged operators to show more interest in Financial inclusion, review the guidelines around it and report to the commission .

” The commission will like to get feedback on anything that make people show more interest in micro insurance and Takaful insurance,” she said.

On IFRS 17 and implementation, Nwachukwu noted that the regulator had encouraged all the insurers to ensure that they gather analysis and get ready by putting in place all internal requirements and board for the implementation .

The managing director disclosed that the rebranding project of the industry has been extended and would be re- initiated soon with a new structure that was different from the former .

Nwachukwu revealed that the sub-committees of the Insurers Committee have been reduced from 8 to 6 .

She listed the sub -committees as: Corporate Governance and Ethics, Market Development and Government relation, Customer Services, Credentials Guidelines, Technical and Publicity/ Communication subcommittee.

The meeting was attended by top directors in NAICOM and Chief Executives Officers of insurance companies.

Insurers Committee was established by NAICOM and operates like the Banker’s Committee .

It consists of NAICOM directors and CEO’s of all underwriter insurance companies in Nigeria .

The Committee , inaugurated on Nov. 19, 2015 by the then Minister of Finance, Mrs Kemi Adeosun, operates under a mandate to rebrand and strategically reposition the insurance industry