NAICOM and DRTS Forge Alliance to Combat Motor Insurance Irregularities

By LOVETH AZODO, Lagos

In a strategic move to tackle motor insurance irregularities, the Commissioner for Insurance/CEO, National Insurance Commission, Mr. Olorundare Sunday Thomas and Director of Road Transport Service, FCTA, Dr. Bello Abdul-Lateef have strengthened their collaboration in curbing underpayment of premium and fighting counterfeit policies.

NAICOM Boss who stated this during a courtesy visit to Abdul-Lateef, Wednesday explained that there are Instances where individuals exploit loopholes to pay lower premiums than required and the prevalence of fake Third-Party Motor in the country.

During the discussion, Dr. Abdul-Lateef highlighted concerns about individuals renewing vehicle particulars without receiving adequate insurance coverage. He emphasized that despite paying N15,000, many were only receiving coverage worth N4,000 due to engaging unauthorized intermediaries.

Furthermore, Dr. Abdul-Lateef showcased the adoption of technology within DRTS, with 98% of processes now automated. This initiative enables individuals to initiate vehicle particulars renewal from the convenience of their homes.

The Commissioner for Insurance shed light on the enhanced third-party Motor Insurance, effective since January 2nd, 2023. This upgrade raised the premium from N5,000 to N15,000 and expanded coverage benefits from N1,000,000 to N3,000,000, offering increased protection for road users.

In his closing remarks, the Commissioner emphasized the importance of collaborative efforts between NAICOM and DRTS in reducing third-party motor insurance irregularities.
The alliance aims to strengthen active policing and ensure the effective management of insurance systems for enhanced road user protection.