The pan-Yoruba socio-political organisation, Afenifere, has kicked against recent increase in minimum insurance cover from N5,000 to N15,000 with effect from January, calling on the National Insurance Commission (NAICOM) to reverse its decision.
Afenifere in a statement signed by its national publicity secretary, Comrade Jare Ajayi, said the rationale behind the hike “is difficult to fathom.”
Following the directive issued by the Insurance Commission last Thursday, private car owners who were paying N5,000 premium per vehicle for N1 million Third Party Property Damage (TPPD) limit, are now to pay N15,000 for N3 million TPPD, while staff buses owners are to pay N20,000 premium per vehicle for N3 million TPPD.
The organisation, while expressing its concern over the new decision, said some government agencies such as Federal Ministries of Education and Labour, the Nigerian National Petroleum Corporation (NNPC), among others, seemed to derive pleasure in inflicting pains on the people of Nigeria.
They noted that it was amid the various challenges that NAICOM came up with an unprecedented hike of over 200 per cent in the amount of money people had to pay to get the minimum insurance cover.
According to Afenifere, the move also came at a time when another government agency, the National Bureau of Statistics (NBS) disclosed that 63 per cent of Nigerians, amounting to 133 million people are suffering multidimensional poverty, while unemployment is at an all-time high, among others.
“This was done at a time when another government agency, National Bureau of Statistics (NBS) described 63 per cent of Nigerians (i.e. 133 million) as suffering multidimensional poverty just as unemployment is at an all-time high. With cost of living so high, with personal income dwindling so much and with uncertainty so pervasive, why would it be now that NAICOM would raise the cost of insurance premium?” Afenifere queried.
The group added that National Bureau of Statistics (NBS), in the 2022 Multidimensional Poverty Index (MPI) report it launched last November in Abuja, had revealed that two out of every three Nigerians are poor and are experiencing about one quarter of all possible deprivations in terms of health, education, living standards, work and shocks.
Afenifere stated that part of the mandates of NAICOM is to protect insurance policy holders, but quickly observed that many Nigerians were on record to be lamenting over the horrible experiences they were having in the hands of most of the insurance companies in the country.
Motorists To Pay N15,000 For Third Party Motor Insurance
“Many could not get their claims from their insurance companies despite several efforts made. Many died in the process while many abandoned the claims because they could not get it years after.
“Thus, NAICOM, which is prepared to ‘sanction’ insurance companies that fail to enforce the new tariff has not been known to sanction these companies when they fail to meet their obligations to their clients who make claims on them – thus raising the question as to whose interest exactly is NAICOM out to protect?” Afenifere said.
The organisation stated that NAICOM ought to concern itself first with whether insurance companies were fulfilling their own side of the contract entered into with their clients before it arbitrarily jerked up the fee for insurance covers.
“It is a matter of serious concern to us that NAICOM, like some other government agencies here, appears to fatalistically gloat when policies put in place to bring pain to Nigerians. Otherwise, why should motor owners be asked to pay 200 times more than they have been paying for an insurance cover – especially when it is known that such high costs would be passed on to the poor Nigerians who patronize the motorists,” he said.
It insisted that the hike should be reversed, noting that the month of January is always a time when a lot of money is paid out in terms of school fees, rents, among others and that it was inconsiderate of NAICOM to come up with this increase at this time.
