NAICOM decries absence of insurers in licensing offices

NAICOM decries absence of insurers in licensing offices

Chuks Udo Okonta

The National Insurance Commission (NAICOM) is worried over insurance operators’ inability to take advantage of its last year arrest of insurance policy racketeers in licensing offices Inspen has learnt.

It was gathered that the decision to arrest the fake operators was to pave way for insurers to extend their operations to licensing offices, and stem the sales of fake vehicle insurance policies.

A source at the commission said most insurers have refused to take advantage of the opportunity  NAICOM created by arresting the   racketeers in several licensing offices across the nation, adding that only one or two firms, have extended their operations to the areas.

He noted that the commission may not continue with the arrest, stressing that insurers have been given the opportunity to block that gap that leads to leakage of enormous revenue to the industry.

Former President, Lagos Area Committee of the Nigerian Council of Registered Insurance Brokers (NCRIB) Tunde Oguntade, said about 90 per cent of third party covers carried by motorists are fakes, adding that billions of naira is lost annually to fake policy menace.

He said: “About 90 per cent of third party covers carried by motorists are fakes, so you can imagine the figure. Let us assume that we have 2 million motorists in Lagos and you have only 200,000 that have valid insurance cover. That is how bad it is.”

Worried by the menace the Nigerian Insurers Association (NIA) embarked on the Nigerian Insurance Industry Database (NIID) project to harmonise the industry’s database.

The initiative which has been launched, is still clogged with challenges as the over 500,000 electronic devices meant to drive it is yet to be distributed to security agencies.

According to a report by the Information Technology Committee of the NIA, over 550,000 motor policies had been uploaded by 42 firms.

The report said: “The NIID project went live on September 8, 2011. Member companies commenced motor insurance policies data upload immediately and over a total of 550,000 motor policies records had been uploaded by 42 members underwriting motor.

“Selected members of the committee had been highly instrumental to the development, implementation and test running of the NIID system. Committee members had also been involved in training their companies’ branch officers, having undergone the initial train-the trainer briefing on the aims and objectives of the NIID.”

NIA said the benefits of the project include monitoring and authenticating insurance transactions documents, reducing incidences of fraudulent insurance transactions and policies most especially for motor and marine policies, reducing red tape and corruption by integrating with the vehicle registration system of the FRSC, the police and other relevant agencies and ensuring access to statistical data for effective decision making.

It stated that the project will also help develop capacity in NIA to monitor and authenticate underwriting transactions with the industry and facilitate information sharing on stolen vehicles through technology-driven collaboration between relevant agencies. 

Director-General NIA Sunday Thomas said the customised e-reader gadget to be used by security agents to verify vehicle policies will be distributed across the 36 states and the Federal Capital Territory (FCT).