Underwriters urge motorists to use NIID for policy verification

Underwriting firms in the nation’s insurance industry have urged vehicle owners to verify their motor insurance through the Nigerian Insurance Industry Database (NIID).

The NIID was introduced by the Nigerian Insurers Association (NIA) to verify the status of their motor policy by visiting www.askniid.org or by sending an SMS to the USSD code *565*11#.

Acting under NIA, the firms have urged vehicle owners to use NIID for verification and insured their vehicles to get adequate compensation to meet their liability costs.

Speaking on the issue at an NIA, the Regional Manager at Linkage Assurance Plc, Muyiwa Awodire, said the premium hike came after 19 years. He urged vehicle owners to verify the authenticity of their policies.

“The last time we had an increase in premium for third-party motor insurance was in 2004. Now, if you consider the rate of inflation over the past 19 years, you will realise that the increase is long overdue,” Awodire added.
He added: “But beyond the hike, let us also consider the benefits. Until December 2022, the highest claim anyone could make on third-party motor insurance was N1 million because that was the limit. But that has changed now. A policyholder can claim up to N3 million. We all know how expensive vehicles have become now.

“So, it is in the interest of policyholders that they embrace the increase. While it is true that no one prays for an accident, the indubitable fact is that accidents do happen. When they happen, the insurance companies are on hand to mitigate the loss. So, people should shift their focus from just the cost and consider the benefits. The benefits, in my opinion, outweigh the cost.”

The Director-General of the Nigeria Employers’ Consultative Association (NECA) Adewale-Smatt Oyerinde, at an event held in Lagos, said that the premium increase would be beneficial to the economy and develop the insurance industry and provide effective risk-mitigating services to Nigerians, we believe that a marginal adjustment in the current rate is desirable.”