Yemisi Izuora
The Nigerian insurance industry is currently posting a loss of over N60 billion annually as a result of the systems inability to check activities of forgery of motor vehicle insurance certificates.
The chairman of the Nigerian Insurers Association (NIA), Mr. G.U.S Wiggle lamented that the sector is significantly short changed by fake insurers who also swindle motorists by issuing them forged certificates.
He disclosed that the Industry is losing over N60 billion yearly to fake motor insurance business.
He also disclosed that out of the 15 million vehicles plying Nigerian roads, only about 3 million have genuine covers , thereby leaving 12 million in the hands of fake insurance policies.
He said the cheapest class of motor insurance which is third party goes for N5,000 and that if 12 million vehicles are uninsured that would amount to N60 billion.
He noted that if comprehensive policies are considered the amount would be over N60 billion and that as a result of the monumental loss, the association is working with all stakeholders to eliminate fake insurance business in the country which has contributed to low GDP contribution by the industry.
This he said has led to the launching of the Nigerian Insurance Industry Database (NIID) initiative, designed to enable operators upload data of insured vehicles and also help the public verify the genuineness of the papers they possess.
He however urged government and agencies at all levels to ensure strict enforcement of the law, adding that lack of enforcement of law was a major hindrance to growth and development of insurance in the country.
He urged the general public to ensure they patronise registered brokers and agents.