Third party motor insurance policy is a compulsory policy and also mandatorily enforced with consequences if a vehicle on the road is not covered against damage and injuries to third parties. The policy has moved further in Nigeria with N3million third party property damage TPPD for just N15,000.00 premium rate.
The compulsory nature of third party motor policy makes it mandatory that motorists risks to third party are covered by insurance at a predetermined premium leaving the vehicle owner with no option but to go on cover. The mandatory nature made motorists and vehicle owners to get cover without doing background checks on the veracity of the company providing cover. The syndicates moved in taking a heavy chunk of would be insurance premiums offering non existent covers.
The premium announced by the National Insurance Commission NAICOM jolted the public and it came just at the end of the year with just one week for 2023 to begin to count.
A large chunk of policies including motor especially for corporate accounts are renewed at the January renewal period but for some individuals decision to renew was fluctuating and several underwriting offices confirmed this outcome as individual renewal stats dropped.
NAICOM does not see this as surprise reaction. The Commissioner for Insurance, Sunday Thomas, said at a recent media event that “Gradually people will absorb it and the N3million TPPD benefit. Its not just about N15,000.00 premium, there is also the benefit of N3million.”
He said the laggards are thinking of what they have to pay, but they are not thinking of what they might not partake of a financial responsibility that the policy has snatched from them and they are now saved financial outlay. The actions of those who are dragging apart, the CFI said he has got a lot of commendations from some CEOs.
The policy rate he reiterated is less than nine months which is not enough to ascertain the response by the public but the policy he remarked has come to stay and the Commission would at a time decide to do rating compliance inspection, he cleared that the Commission is monitoring any violation and would take regulatory note of those companies.
“I believe that the issue of N15,000.00 has come to stay. The system is adjusting to it and, eight months is too short for us to begin to review the impact but I can tell you the economy is adjusting to this. Not just the N15,000.00 even the 5% minimum on comprehensive motor insurance.” He emphasised that what is permanent is change and what is also most resisted is change.
The stealth involvement of the Commission in clearing outstanding claims on all categories of business motor policy inclusive is paying off. The CFI said categorically, “We have done a lot on claims recently trying to ask companies to be alive to their responsibilities.
Quick time settling of claims is gaining space in the insurance market. Claims processing can now begin online at the claims portal of several companies and thereby reducing the time required to get claims paid. This perspective is catching on well in the market and playout of this is streaming for the public to be aware of.
Sanlam Nigeria code of confidence USSD enabled fast claims settling device takes off claims of less than N200,000.00 from the claims request in less than an hour, The company recently established its pride of place among its customers with code of confidence USSD which customers can use the simple and user friendly USSD on the their phone to initiate instant third party claims.
