The insurance industry has lost a whopping N240 billion premium income from the non-insurance of an estimated eight million tricycles and motorcycles which ply Nigerian roads, over a period of 16 years, from year 2000 to 2016, LEADERSHIP investigation has revealed.
This figure, according to findings, is only N10 billion less than the total premium income generated by insurance companies in the current year (2016), which is put at N250 billion, following a drop in insurance renewals, with only few new covers recorded and the preference for quarterly and monthly premiums as a result of the current economic recession.
Further investigation shows that the industry loses about N40 billion on a yearly basis to uninsured tricycles and motorcycles as virtually all of them have no third party motor insurance cover which is sold at N5,000 per policy, even though these means of transportation are covered under the 3rd Party Motor Insurance Act.
Since the year 2000, there has been an influx of tricycles, popularly known as Keke NAPEP, and motorcycles, commonly called Okada, as means of transportation in most urban and rural areas across the federation, following rising unemployment, with a lot people eking out a livelihood through them.
Despite this influx, insurance companies have been unable to sell their products and services to these transporters as the owners refuse to buy insurance cover.
The reason for the continuous neglect of insurance cover by these transporters, findings show, is because the law enforcement agencies are too lenient with tricycle and motorcycle owners; they rather focus on vehicles for insurance enforcement.