Senate Tuesday expressed concern that 12 out of the 16 million registered motorists in Nigeria were carrying fake insurance certificates.
This was said during debate on a motion sponsored by Ahmed Ogembe and eight others on implementation of compulsory insurance in Nigeria, as provided in the Insurance Act and Regulation 2003.
Ogembe in the motion submitted that out of the 16 million registered vehicles in Nigeria, only 4 million were properly insured.
According to Ogembe, “The country is grossly under-insured and basically, her citizens do not take advantage of services rendered by this very important sector of the economy.
“Presently, 58 insurance companies are registered with the National Insurance Commission, yet there are uncountable number of unregistered insurance institutions selling worthless insurance certificates to unsuspecting members of the public.
“This reprehensible act is mostly manifest in the third party motor/vehicle insurance scheme where such unregistered institutions connive with relevant law enforcement agencies to perpetrate the act.”
Senate accordingly mandated its committee on Banking, Insurance and other Financial Institutions to invite all stakeholders in the insurance sector to deliberate on ways of ensuring strict compliance with the six compulsory insurance schemes as provided in the Act and invoke sanctions where necessary.
It also urged the National Insurance Commission (NAICOM) to properly orientate the public on the insurance policies as stipulated in the Act and publish the 58 registered insurance companies for public patronage and adherence to insurance policies.
Stakeholders expected include NAICOM, registered insurance companies in Nigeria as well as relevant law enforcement agencies like the Federal Roads Safety Commission (FRSC) and Vehicle Inspection Office (VIO).
Deputy Senate president, Ike Ekweremadu who presided over the session referred the motion to the Senate Committee on Banking, Insurance and other Financial Institutions for further legislative action.
