INSURANCE & YOU

NAICOM, Abuja DRTS partner to curb fake 3rd party motor insurance, lower premium payment

The National Insurance Commission (NAICOM) and the Directorate, Road Transport Service (DRTS) of the Federal Capital Territory Administration (FCTA) have expressed readiness to collaborate on insurance matters.

They are exploring areas of partnership, especially on curbing instances were persons circumvent the system by paying lower premium than expected and the issue of ‘fake’ third party motor insurance.

This emerged when the Commissioner for Insurance/Chief Executive Officer of the National Insurance Commission, (NAICOM) Mr Olorundare Sunday Thomas, paid a courtesy visit on the Director, Road Transport Service, FCTA, Dr Bello Abdul-Lateef, last week, in Abuja.

NAICOM told the media that the “purpose of the visit was to formally explore areas of collaboration with regards to curbing instances were persons circumvent the system by paying lower premium than expected and the issue of “fake” third party motor insurance.”

It pointed out that the Director, DRTS, noted that a lot of individuals renewing their vehicle particulars were not getting value for the insurance premium being paid as they did not validate the insurance policies after purchase even though they might have paid N15,000, whereas the cover they were actually given cost N4,000 considering the fact that they might have engaged unauthorised persons to help process their request.

The Director, DRTS further mentioned that the directorate is now leveraging technology to curb such issues and that 98 percent of its processes are now automated.

Abdul-Lateef added that individuals can now commence the process of their vehicle particulars renewal from the comfort of their homes.

The Commissioner for Insurance also informed the Director, DRTS on the enhanced third-party motor insurance, which became effective on January 2, 2023, increasing its premium from N5,000 to N15,000 and also its benefits from N1,000,000 to N3,000,000 covers, respectively for the protection of road users.

Thomas mentioned that effective collaboration between NAICOM and DRTS will help reduce the incidences of third-party motor insurance irregularity by enhancing active policing to ensure adequate insurance management system.

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Joseph Inokotong

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