Insurance Premiums to be automated – FG

If plans by the Minister of Finance, Mrs Kemi Adeosun, to deplore the use of technology to monitor vehicles in the country succeeds, motorist will be automatically charged insurance premium for third party motor policy, The Nation has learnt.

Commissioner for Insurance, National Insurance Commission (NAICOM), Mohammed Kari, told a gathering of insurers, brokers and agents in Abuja that the minister plans to constitute a body comprising the Commission, Federal Road Safety Commission (FRSC), Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service to checkmate and control motorists’ activities.

According to him, the minister believes in the power of technology and has asked that it be fully deployed to increase premium income in the industry.

She hopes that more tax will be earned because a proper record of vehicles in the country would be ascertained.

He said: “The minister has said she is constituting a body which will comprise of NAICOM, Federal Road Safety, Federal Inland Revenue and the Customs. By using the Bank Verification Number (BVN) technology, all vehicles in Nigeria will be registered to an individual.

“She also believes that the tax money will help people know how to avoid use of 10 cars or whether they pay their taxes. Insurance will automatically be charged on vehicles because it will be identified by a number like the BVN. The motorist will automatically get a notice. Technology will assist us in all of these plans.”

Kari further stated that NAICOM on its part, beyond providing leadership and a sane regulatory environment for insurance entities to operate, has continually introduced market developmental programmes and initiatives aimed at increasing penetration and assisting insurance institutions enhance their premium revenue generation and, by so doing, increase the industry contribution to the nation’s Gross Domestic Product (GDP).

“In 2009, the Commission launched the  Market Development and Restructuring Initiatives (MDRI) programme. This is a medium term industry development plan designed by the Commission with focus on the enforcement of compulsory insurance products, increase insurance awareness, reduction in incidences of fake insures/insurances and increase agency reform.

“This initiative was successfully launched in the six geo-political  zones and Abuja. The Commission also followed up with massive awareness campaign, roadshows and seminars again in all the zones of the country. These efforts were geared towards making the insurance institutions richer and better.

“The Commission has also recently embarked on the sensitization of Ministries, Departments and Agencies (MDAs) of government on the compelling need for adequate insurance of their assets. We have equally canvassed the engagement of insurance professionals to handle their insurances to ensure they procure proper insurance policies,” he added.

 

Source: The Nation