NAICOM Collaborate With FCTA To Combat Insurance Irregularities

The commissioner for Insurance and chief executive officer of the National Insurance Commission (NAICOM), Mr. Olorundare Sunday Thomas, paid a courtesy visit to the director of road transport service at the Federal Capital Territory Administration (FCTA), Dr. Bello Abdul-Lateef, on Wednesday, April 3, 2024.

The purpose of the visit was to explore areas of collaboration to address two critical issues: the circumvention of the insurance system through underpayment of premiums and the proliferation of fake third-party motor insurance, according to a statement that was issued by the commission.
During the meeting, the director of road transport service highlighted concerns regarding individuals renewing their vehicle particulars without receiving the expected insurance coverage.

He told the commissioner that many individuals were found to be paying higher premiums, such as N15,000, but receiving insurance coverage worth only N4,000 due to engagement with unauthorised intermediaries.

To address this issue, Abdul-Lateef said his office has implemented technological solutions, automating 98 percent of its processes and allowing individuals to initiate vehicle renewal processes from their homes.

The commissioner for insurance informed Abdul-Lateef about the enhanced third-party motor insurance, which came into effect on January 2, 2023. He said “The premium for this insurance has increased from N5,000 to N15,000, and the benefits have been raised from N1,000,000 to N3,000,000 for the protection of road users.

Thomas emphasised that effective collaboration between NAICOM and the FCTA’s Road Transport Service would help reduce instances of third-party motor insurance irregularities by implementing active policing measures to ensure proper insurance management systems.