Fake motor insurance agents are killing insurance sector, Insurers lose N192B yearly
Fake motor insurance agents are killing insurance sector, Insurers lose N192B yearly

Fake motor insurance agents are killing insurance sector, Insurers lose N192B yearly

“We implore the public to maximise the benefits provided by insurance and secure their lives and properties. Insurance remains one of the best tools to safeguard properties at times like this, when is difficult to restore lost items.”

There is 80 per cent chance that every vehicle owner in the country is carrying fake motor insurance certificate as illegal activities rise. Omobola Tolu-Kusimo writes on how insurers hope to end the menace.

Agents selling fake motor insurance policies are still on the prowl.They deceive about 9.5 million vehicle owners with fake certificates.

Findings by The Nation shows that about N192 billion is lost by insurance firms to the miscreants yearly. This is going by the yearly premium generated from the sales by the firms.

Data released by the association revealed that the industry recorded N42.90 billion premium from motor business in 2014; N39.84 billion in 2015; N40.39 billion in 2016 and N39.29 billion in 2017.

With an average sale of N40 billion from N2.5 million genuine policies, about N192 billion would be made from 12 million vehicles. However, the percentage of fake policies lost based on 9.5 million vehicles out of 12 million vehicles is 79.17 per cent.

The records of the Nigerian Insurers Association (NIA) states that only 2.5 million vehicles have genuine certificates out of the 12 million vehicles that ply the roads.

The NIA affirmed this figure through its platform titled: “Nigerian Insurance Industry Database (NIID)’’, where insurance firms upload motor insurance policies sold daily.

The Nation gathered that fake motor insurance are sold at local governments areas headquarters, Federal Road Safety Commission (FRSC) and Lagos State Vehicle Inspection Service offices.

Insurers have, however, moved to capture the 9.5 million vehicle owners carrying the fake motor insurance policies with the commencement of an awareness campaign tagged, “Wetin You Carry?

The insurers, under the auspices of the Nigeria Insurers Association (NIA) went to NIA Director-General, Mrs. Yetunde Ilori, at a media launch in Lagos, said the “Wetin you Carry” campaign is aimed at stemming the menace of fake motor policies.

She maintained that the association launched the campaign to educate motorists on the need to secure their vehicles with genuine insurance policies.

She noted that the association had deployed a team of 33 persons, known as Insurance Squad, Lagos State to educate the public on the benefits of possessing genuine motor insurance covers.

She said the association desires to put the slogan, Wetin you carry? on the lips of everybody, adding that the slogan is not meant to extort something from people, but to enquire from them whether they are carrying genuine or fake policies.

She said: “The campaign is not geared towards enforcement, but to let people understand that they can have genuine policies that could give them rest of mind in times of incidence. The campaign would be driven through different platforms, such as billboard advertorials, media and digital and that the pilot scheme, would start from Lagos and later extended to other states.

“We implore the public to maximise the benefits provided by insurance and secure their lives and properties. Insurance remains one of the best tools to safeguard properties at times like this, when is difficult to restore lost items.”

Fake motor insurance agents are killing insurance sector, Insurers lose N192B yearly
Fake motor insurance agents are killing insurance sector, Insurers lose N192B yearly

Nigerian Council of Registered Insurance Brokers (NCRIB) President, Mr. Shola Tinubu during a press briefing with journalists said it is unfortunate that despite the existence of compulsory insurance Act of which Third Party Motor Insurance is part of, some motorists have decided to patronize fake insurers at the detriment of the registered insurance firms, while some are uninsured, thereby, making insurance industry loses billions of Naira on an annual basis.

He urged the people to do their insurances through brokers, as insurance brokers have the needed expertise to advise them on the right policies that suit their needs.

The Managing Director, Consolidated Hallmark Insurance PLC, Mr. Eddie Efekoha on his part urged the government and law enforcement agencies to support insurers by enforcing the procurement of compulsory insurances, adding that operators cannot be selling products and at the same time carry out enforcement.

Read: Should all Nigerian athletes get health insurance?

He believes if there is proper enforcement and the right sanctions meted on the violators, road users would not want to put their cars on the roads without valid cover.

“With enforcement, the insurance industry will not only get more premium income, it would also increase the contribution of the industry to the nation’s Gross Domestic Product (GDP),’’ he said.

Federal Road Safety Corps (FRSC) Corp Marshal, Mr. Boboye Oyeyemi, said increasing insurance patronage, such as subscription of insurance by motorcycles, requires a commitment to a public-private partnership process that combines the development of a conducive enabling environment, the building of strong public institutions and programme, and a local private sector that has the capital and knowledge to successfully embed road safety in insurance products.

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