In a no holds barred rejection of the new motor insurance that commenced January 1,2023, the Insurance Consumers Association of Nigeria (INSCAN) said the new 3rd party insurance premium is at variance with some of the works commissioned by the National Insurance Commission (NAICOM) which recommended phased increase of 3rd party motor insurance premium.
The letter by INSCAN National Coordinator, Chief Yemi Soladoye, titled, “Demand for reversal of your policy directive on the increase of 3rd party motor insurance premium in Nigeria by 200% under one (1) week notice to the Nigeria insurance consumers,” noted that the phased increase required a staggered increase first to N7,500 and subsequently to N10,000, N12,500 and ultimately to N15,000 within a ten year period.
Soladoye outlined that the recommendation was not limited to premium increase, but there was a mandate to NAICOM in 2012 to include in the process initiatives that will ensure, “The emergence of high level confidence in insurance mechanism in Nigeria to the extent that by the year 2012, mere exchange of insurance papers will resolve any accident/damage dispute among Nigerian motorists.”
However, he said only the benefits were taken and he asks “Why take only the benefit and ignore the responsibility that is already 10 years overdue on your part.”
The Nigerian Corporation of Registered Insurance Brokers (NCRIB) which actively participated in the prolonged process of announcing the new motor 3rd party insurance premium and may be not at the point of arriving at the N15,000.00 premium, has assigned the diagnosis of the new rate to its technical committee to take a position.
Businesspost gathered that the Technical Committee are already sitting and would pass their recommendations to the Council of NCRIB for further deliberations at which point the NCRIB would present their position.
INSCAN which claimed to be representing almost 20 million motor insurance consumers in Nigeria said consumers deserve more than one (1) week notice. “We are not impressed by your corresponding increase in the indemnity limit to N3.0m etc as the questions on the on the lips of our members are – 1) who requested for this increase to N3.0m. 2) How many claims have you really settled even when the limit was N1.0m. 3) Are you aware that many fleet owners on their own volition do pay extra premium to the underwriters to increase their TPPD limit to N5.0m and 4) Where are the insurance ratios to justify that premium increase by whooping 200%.
“You are definitely aware of the fact that even at the current N5000 MTP premium, many Nigerians still patronise the fake underwriters and this is not because Nigerians cannot afford the N5000 but because they don’t see any benefit be it under your genuine or the fake cover,” he stated.