Senate Seeks Insurance Package For Rail Travellers

Senate has pushed for an insurance package for rail travellers and transporters.

This initiative is part of a new bill to amend the Nigerian Railway Corporation (NRC) Act.
The bill, presented by Senator Solomon Adeola during a recent plenary session, seeks to include an insurance fee in the NRC Act to ensure adequate insurance coverage for passengers and goods using railway services.

Senator Adeola highlighted the growing popularity of railway transportation in Nigeria, with the modernisation of rail systems nationwide. Passengers are now opting for trains as a reliable alternative to other modes of transport, especially on popular routes such as Abuja to Kaduna, Lagos to Ibadan, and more recently, Port-Harcourt to Aba.

Additionally, trains are being used to transport bulk goods on the nation’s rail tracks.

However, Senator Adeola pointed out a significant gap in the current rail system – the lack of comprehensive insurance coverage for passengers and goods using the NRC services. He referred to a previous incident where a train was attacked by bandits, resulting in derailment, damage to the rail tracks and coaches, and the unfortunate kidnapping and deaths of passengers. As the NRC Act does not currently provide for insurance coverage, the affected passengers were left without any compensation.

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Senator Adeola emphasised that most sectors of the transportation system in Nigeria offer some form of insurance protection. For instance, commercial vehicles, such as buses and taxis, are required by law to carry passenger liability insurance, which provides financial compensation in case of accidents, injuries, or death. He argued that the absence of mandatory insurance for train passengers using NRC services is a significant gap that needs to be addressed. He said implementing a robust insurance scheme would not only prioritise safety measures but also improve service delivery and boost confidence in the railway system.

During the plenary session, peputy president of the Senate, Barau Jibrin, commended Senator Adeola for his efforts and expressed hope that President Bola Tinubu would support the bill. He stressed the importance of aligning with international best practices in rail transportation. As a result, the bill has been referred to the Committee on Land Transport for further legislative inputs, with a report expected back to the plenary in four weeks.