Nigerian Insurers Association’s (NIA) initiative with the Lagos State Government on automatic plate recognition has enhanced the embrace of third-party motor insurance policy without NIA’s push.
The Chairman of NIA Olusegun Omosehin said the trade initiative which is one of the several the association has rolled out, is driving penetration and firming up the need for insurance cover that is mandatory.
He emphasised that the Lagos State initiative is very important to the industry as it enforces cover purchase after the vehicle owner has paid the N20,000.00 penalty for not having a third party.
“That is enough to compel people to insure. The platform is encouraging people to insure. The State, with data reckoning, saw an exit through which the insurance industry was losing premium income on the mandatory third-party motor insurance and rolled out a N20,000.00 penalty for failing to adhere to mandatory N15,000.00 third-party motor insurance. It has now become a cash cow and revenue well for the state,” he stated.
Omosehin explained further how the initiative works: “We opened our platform to the Lagos State Government to have a handshake with our platform. They pull data from our platform to assist in enforcement; what they are doing is to the advantage of the industry.”
The NIA Chairman while briefing the media at the maiden event said, “As an Association we have opened that platform to Lagos State and we are encouraging other States to do likewise. As we speak, we have collaboration with the Federal Road Safety Corps (FRSC). That was a follow-up to the visit we made and a pledge to work with us as assistance in the issuance of proof of ownership such that our platform becomes a ready source of data for them.”
He said the association will continue to bring up those relevant areas that are relevant and helpful to the industry development, noting that if enforcement continues people will do what is right, though it may take a while.
ALSO READ: FG, NAFDAC to ban syringe imports, boost local manufacturing
and then