Insurance policies

8.6 million out of 12 million vehicles have fake insurance policies – Survey

As many as 8.6 million out of an estimated 12 million vehicles plying Nigeria’s roads are uninsured or have fake insurance certificates, LEADERSHIP has learned.

This means that only about 3.4 million vehicles registered in the country are truly insured.

The 3.4 million vehicles were all registered on the Nigerian Insurance Industry Database (NIID) by their respective insurers.

The survey shows that some of these 8.6 million vehicles sport fake car insurance papers, while some had no insurance cover, although few of those who had genuine insurance papers previously n haven’t renewed their previous auto insurance coverage.

The Federal Roads Safety Corps (FRSC) Act requires any automobile on Nigerian roads to have at least a third party auto insurance policy or comprehensive insurance coverage which is 10% of a vehicle’s value.

Third party vehicle insurance is offered at a fixed price of N5,000 for sedans and SUVs for private use, while vehicles for commercial use are charged at N7,500.

To this end, the insurance industry loses around 46 billion naira due to these vehicles not being insured, assuming that all 8.6 million vehicles carry third-party car insurance, which is the minimum cover to have before driving a vehicle on Nigerian roads.

The survey revealed that most drivers opt for bogus insurance because it is cheap and to avoid the wrath of law enforcement officers as they know little or nothing about the benefits of buying one. original insurance coverage. Other uninsured motorists, it has been learned, prefer to bribe law enforcement in case they encounter them on the roads.

Speaking on the development at a press conference hosted by the Nigerian Insurers Association (NIA) in Lagos yesterday, NIA Chairman Mr. Ganiyu Musa said that by the end of January 2022, the number of vehicles insured in Nigeria was 3.4 million, stating that these vehicles were those whose insurance policies were still up to date.

He enjoined other motorists to take out a car insurance policy of at least 5,000 Naira as this guarantees them up to 1 million Naira in the event of the third party vehicle contingency.

He promised that insurers will always pay genuine claims, just as the industry has improved over time in the area of ​​paying claims.

Speaking on the #EndSARS claims, Musa said insurance companies had paid over N11 billion to policyholders who suffered losses during the protest in 2020.

“The association will continue to insist on the need for insurance companies to pay all genuine insurance claims and will not hesitate to sanction member companies at fault,” he said.