The partnership between insurers and the Federal Road Safety Commission (FRSC) on the new vehicle licence will yield higher premium to insurers the Managing Director, Sovereign Trust Insurance Plc, Wale Onaolapo, has said.
Onaolapo told Inspen that insurers’ data have been built into the new vehicle licence issued by the FRSC. He noted that the measure will boost insurance premium which before now are lost to counterfeiters.
He said the data development of the industry remains one of the best things to have happened in the industry as it would help the sector in many areas especially planning for the future.
The President, Lagos Area Committee of the Nigerian Council of Registered Insurance Brokers (NCRIB) Tunde Oguntade, said insurance have been properly built into the new licence scheme, adding that the effort would curb fake document as it cannot be counterfeited.
He said: “In our last annual general meeting we had discuss, with the Assistant Corps Marshal of the Federal Road Safety Commission (FRSC) who sent a representative. It was our initiative to create rapour with the agency.
“We wanted to know the position of brokers and underwriters in the new licensing scheme and the benefits. We started on a good note; we have seen that insurers are now properly placed in the licensing scheme. Now, you cannot have your vehicle licence renewed without a valid insurance cover. It is a good step in the right direction.
“Now that they have brought in the underwriters, the issue of agency would also be sorted out. It is a good step as it would lead to almost 80 per cent motorists buying insurance, even if it is just a third party.
“We welcome it and would collaborate with them and the same time, we are looking at a way of ensuring that brokers are properly located in the scheme of thing.”
He said the proposed electronic licence is truly a wonderful development, adding that this is because with it the issue of fake certificate would be curbed.
“The device would help to develop the volume of patronage, ensure that people get valid insurance cover and when people get valid insurance cover and claims arises and they get prompt settlement it would encourage them to look at other areas outside the statutory requirement.
“If people get settlement in third party, it would encourage them to look at luxury covers such as life, assets protection, fire and burglaries and the likes. It goes beyond the ordinary statutory cover – third party,” he added.
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