The Senate yesterday mandated its Committee on Banking, Insurance and
other financial institutions to invite stakeholders in the insurance
sector to look into recent findings which showed that over 12 million
motorists in the country use fake insurance papers. Stakeholders to
be invited according to the resolution of the upper chamber included the
National Insurance Commission (NAICOM), registered Insurance companies
in Nigeria, relevant law enforcement agencies.
The stakeholder,
the Senate said, should urgently deliberate on ways and means of
ensuring the strict implementation and compliance with the six
compulsory insurance schemes as provided in the Act and invoke sanctions
where necessary. The resolutions followed a motion by Senator Ahmed
Salau Ogembe (Kogi Central) and eight others entitled, “Implementation
of the compulsory insurance in Nigeria as provided in the ‘Insurance Act
Regulation, 2003.’
Senator Ogembe in his lead debate lamented
that of the 16 million vehicles in the country, only four million are
properly insured. He noted that the “Insurance Act and Regulation
2003” expressly provides for six compulsory insurance schemes namely:
(i) The Third Party Motor/vehicle insurance (ii) Building under
construction insurance (iii) Group Life insurance (iv) Public buildings
insurance (v) Workman Compensation insurance (vi) professional indemnity
insurance.
He further noted that these insurance schemes are
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 Kogi Central lawmaker said that he is worried
that 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 as a result of many reasons such as; (a) the existence
of unregistered insurance institutions within the system (b) ignorance
and gross knowledge gap. (c) apathy occasioned by several factors
including mistrust and fear for the whole concept of insurance (d)
Poverty.”
Senator Ogembe also said that he is worried that there
are presently 58 insurance companies registered with the National
Insurance Commission, “yet there are uncountable number of 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,” he said. He noted that Section
3(a) (b), section 4(1-4) of the Insurance Act, 2003, expressly provides
the conditions for the registration of an insurance company in Nigeria,
yet these provisions are frequently flouted.
The lawmaker said
that he is alarmed at the staggering number of Nigerians who seek for
help for various reasons including mishaps at workplace, illnesses
traceable to occupational hazards, debilitating injuries and even death
as a result of motor accidents, injuries and death resulting from
building collapse, despite the “Building under construction Insurance”
and the “Public Building Insurance” as provided in the Insurance and
Regulation Act, 2003. He noted that it is equally disturbing that
these Nigerians often have no choice but to have recourse to both the
electronic and print media to seek help which more often, do not produce
the expected results. He expressed confidence that if the
“Compulsory Insurance Schemes”” are implemented as provided in the
Insurance Act, most of challenges raised would be solved.
Senator
Ogembe added that he is further convinced that insurance is a
huge/serious business and its potential in country towards solving
social and economic problems cannot be over emphasized. He insisted
that the Senate should be determined to make necessary changes in the
interest of the country and the insurance sector. Apart from inviting
stakeholders to deliberate on the challenges, the Senate also mandated
NAICOM to properly orientate the public on the Insurance Policies as
stipulated in the Act and make known to the public the 58 registered
Insurance Companies through sustained enlightenment in the national
media. It said that the National Assembly should pay more attention
to the Insurance sector through appropriate legislation and deliberate
actions to raise the status of Insurance in Nigeria to be at par with
other sectors such as Banking and Capital Market as well as complying
with best practices globally.
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