NAICOM To Partner FCTA-RTS On Motor Insurance Implementation
The National Insurance Commission (NAICOM) is seeking partnership with the Federal Capital Territory (FCTA) Road Transport Services (RTS) to ensure compliance of motorists to vehicle insurance regulations especially in Federal Capital Territory.
This was the outcome of the courtesy visit by the Commissioner for Insurance/Chief Executive Officer of NAICOM Mr. Olorundare Sunday Thomas recently on the Director, Federal Capital Territory Authority Road Transport Service, Dr. Bello Abdul-Lateef.
The purpose of the visit was to formally explore areas of collaboration with regards curbing instances where persons circumvent the system by paying lower premium than expected.
The collaboration will also address issue of “FAKE” Third (3rd) Party Motor Insurance.
The Commissioner also informed the Director, on the enhanced third-party Motor Insurance which became effective 2nd January, 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.
Thomas, mentioned that effective collaboration between NAICOM and DRTS will help reduce the incidences of Third-party motor insurance irregularity by enhancing active policing to ensure adequate Insurance management system.
The Director, DRTS, in response noted that 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 actually given cost N4,000 considering the fact that they may have engaged unauthorised persons to help process their request.
The Director, further mentioned they are now leveraging technology to curb such issues and that 98 per cent of its processes are now automated.
In addition, he stated that individuals can commence the process of their vehicle particulars renewal from the comfort of their homes.
