NAICOM seeks DRTS support to address fake insurance policies

The National Insurance Commission (NAICOM) has called on the Directorate of Road Transport Services (DRTS) to forge a common front in the fight against fake Third-Party Motor Insurance in Abuja.

The commission at a strategic meeting with DRTS in Abuja, at the weekend, noted that there was a need to address instances where people circumvent the system by paying lower premiums to some underwriting firms in the sector than expected.

Speaking at the meeting, the Commissioner for Insurance, Sunday Thomas, said the effective collaboration between the two agencies would help reduce the incidences of Third-party motor insurance irregularities with the enhancement of active policing of the sector.

He gave the assurance that the collaboration will equally ensure that an adequate insurance management system is put in place.

Thomas used the occasion to inform the Director of DRTS on the enhanced third-party Motor Insurance, which became effective, on January 2, 2023 increasing its premium from N5,000 to N15,000 and also its benefits from N1, 000, 000 to N3, 000, 000 covers respectively for the protection of road users

Responding, the Director, DRTS, Dr. Bello Abdul-Lateef, noted, “A lot of individuals renewing their vehicle particulars were not getting value for the insurance premium being paid as they did not validate the insurance policies after purchase even though they might have paid N15, 000; whereas the cover they were given cost N4, 000 because they may have engaged unauthorised persons to help process their request”

Abdul-Lateef further mentioned that his department is already leveraging technology to curb such issues and that 98 per cent of its processes are now automated.

He said in addition, that individuals could commence the process of their vehicle particulars renewal from the comfort of their homes.