Osun state government has signed a Memorandum of Understanding, MoU, with some insurance companies operating in the state and brokers on third party insurance for vehicle registration and renewal.
The agreement which takes effect from, June 1st, 2015 was designed to ensure that vehicle owners comply with relevant laws in respect of the insurance of their vehicles and curb menace of fake insurance certificates in the state.
The agreement was also to ensure that vehicle owners have confidence in dealing with insurance companies and to foster unique pattern of the operation of the insurance companies and brokers across the state.
Performing the signing of the agreement on behalf of the state government, the Acting Chairman of Osun State Internal Revenue Board, Mr. Dayo Oyebanji said that agreement e-insurance was aimed to ensure that vehicles owners do not patronize touts and nonexistent insurance companies and brokers.
According to him, it will also assist in detecting easily any stolen vehicles through insurance security code and widening the tentacle of revenue automation of the state.
While substantiating the rationale for the agreement, Oyebanji said it was designed to create an ascertainable legal basis for the conduct of relationships between the parties that is, the Insurance Companies and the insured persons in the course of the establishment and the operation of e-insurance.
According to him, “the essence of the ‘Third Party Insurance for Vehicle Registration and Renewal’ is to make vehicle owners to be confident in dealing with insurance companies and brokers in the state and confirm the validity of their third party insurance certificates through electronic means.
“It would also enable the various insurance companies and brokers to come together to have a unique pattern of operation that people of Osun would repose their confidence in and at the same time avail the people of Osun the opportunity to insure their vehicle assets.
The affected insurance companies and brokers are Lasaco Assurance; Law Union and Rock Insurance Plc; Leadway Assurance Company; Zenith General Insurance; NEM Insurance Plc; Mutual Benefits Assurance; Niger Insurance; Staco Insurance; Cornerstone Insurance and Great Nigeria Insurance Plc. For Brokers, we have LAAM Insurance Brokers Limited; Royal Chamber Insurance Brokers; Kind Insurance Brokers; Subtle Insurance Brokers Limited; Patmodit Insurance Brokers Limited; Mofes Insurance Brokers limited and First Adequate Benefit Brokers Limited.
While speaking on behalf of the insurance companies and brokers, the representatives of the Lead Insurance Company Mr. Kayode Okeremi said, the e-insurance will assist in detecting any stolen vehicle through insurance security code and ensure that vehicle owners comply with relevant laws.
It will also help in curbing the rampant fake insurance certificates and at the same time ensure that third party victims of Road Traffic Accident (RTA) caused by insured vehicles under e-insurance are fully indemnified in accordance with the relevant laws.