…As Operators Seek Automatic Brown Card Adoption
Yemisi Izuora
Operators in Nigeria’s insurance sector are pushing for adoption of the ECOWAS Brown Card Insurance Scheme.
The ECOWAS Brown Card Insurance Scheme was established on May 19, 1982, following the creation of the Economic Community of West African States (ECOWAS) and specifically designed as a common scheme for the settlement of claims arising from accidents in the course of the free movement of goods and persons within the ECOWAS sub-region.
Although the Automatic Brown Card regime is yet to be adopted in Nigeria, according to the Secretary General, Nigerian National Bureau; Mrs Henrietta Anyanna, the scheme has and is fulfilling the purpose for its establishment and has the capacity to unlock the full potential of the motor insurance industry if the resources are judiciously managed.
She drew attention to the reality, that Claims worth more than N84 million have been paid to Nigerian Third-Party victims of Accidents as at December 31st, 2021, even in the absence of an Automatic Ecowas Brown Card regime.
“Imagine what the situation will be like, after the official implementation of the Automatic Brown Card in Nigeria.” The scheme is putting smiles on the faces of victims as well as transforming lives of the less privileged forever she said.
Motorists have a psychological freedom from fears that they may be assailed in case of accident in a country different from their country of residence.
Also, motorist covered by the scheme are well treated as if the basic Insurance policy were underwritten with a company operating in the country visited by the motorist or through which he/she is transiting.
Furthermore, to accentuate the successes of the Scheme, a total of 3,442 cross-border claim cases were successfully handled and settled in the year 2022 alone.
At the First Zonal Meeting of the Scheme in May 2022, in Conakry; an amount of over 500,000,000 FCFA (NGN 334 million) was recorded as compensation to Third party victims of road accident.
