Over 10% of Nigerians drive with Fake Insurance Certificates

Twelve of the 16million motorists in the country are carrying fake insurance certificates, the Senate heard yesterday.
The revelation came during the debate on a motion sponsored by Senator Ahmed Salau Ogembe (PDP, Kogi Central) and eight others on the implementation of compulsory insurance in Nigeria in accordance with the Insurance Act and Regulation 2003.

Moving the motion, Ogembe noted that the 2003 Insurance Act expressly provided for six compulsory insurance schemes-third party motor vehicle insurance, building under construction insurance, group life assurance, public buildings insurance, workman’s compensation insurance and professional indemnity insurance.
He noted that the insurance schemes were made mandatory to take care of third party liabilities arising from the actions or inactions of a person, group/organizations in the course of their activities.
“The country is grossly under-insured and  basically, her citizens do not take advantage of services rendered by this very important sector of the economy.  Presently 58 insurance companies are registered with the National Insurance Commission, yet there are uncountable unregistered insurance institutions selling worthless insurance certificates to unsuspecting members of the public.
“This reprehensible act is mostly manifest in the third party motor/vehicle insurance scheme where such unregistered institutions connive with relevant law enforcement agencies to perpetrate their act. Out of the 16 million vehicles in Nigeria, only four million are properly insured,” he said.
The Deputy Senate President, Senator Ike Ekweremadu, who presided over the plenary, referred the motion to the Senate Committee on Banking, Insurance and other financial institutions for further legislative action.

Source: Daily Trust