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Nigeria loses N530bn yearly to motor insurance evasion – Report

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Emerging reports have claimed that out of 11.8 million registered vehicles plying Nigeria’s roads, it is only about 1.2 million of such vehicles have valid insurance.

Techeconomy.ng gathered that the implications are that the nation’s insurance industry might be losing about N530 billion due to the unwillingness of motorists to register their vehicles.

The development, according to stakeholders is worsened by the inability of the insurance companies to honour claims on the third party insurance that is predominant in the country.

Some insurance shareholders, however, argued that unless the companies obey the rules guiding the industry, vehicle owners might continue to shun motor insurance policies.

According to them, ‘’it is actually pathetic that Nigeria continues to lose money that would have actually impacted on the economy in several ways, especially in job creation, as vehicle owners presently prefer not to take policies but rather prefer to pay fines for violating the laws when the need arises’’.

Speaking on the development, the Managing Director of Arizona Insurance Broker Limited, Obiora Bonaventure explained that it was unfortunate that in most cases, the companies made claims difficult for motorists when they fail to make use of reputable brokers in their motor insurance transactions.

Bonaventure said: “Using a reputable broker helps to diversify the erroneous belief that insurance companies usually refuse to pay claims.

“This is a fact because a majority of brokers will actually tell you the companies that are viable and given the cordial relationship that have existed between brokers and the companies, claims are made easier for customers”.

He however said that a few of the companies that fail to pay claims do so and may not be sanctioned because of the interest the government has in them.”

Confirming actual figures received in recent times, the NAICOM Deputy Director, ICT, Aribike Abiodun Ladipo disclosed that 1.12 million motor insurance certificates were uploaded to the NAICOM portal from May 2020 to May 2021.

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Ladipo added that some companies are still validating the data while few are still uploading even as some have not integrated their software to NAICOM portal yet.

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  1. Pingback: Nigeria Loses N530bn Yearly To Motor Insurance Evasion – Report | Techvalley

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