ECOWAS insurers lose over $70m to fake brown cards

Chuks Udo Okonta

 

Insurers across the Economic Community of West African States lose about $70 million to the menace of fake brown cards, Secretary General, Nigerian National Bureau, ECOWAS Brown Card Insurance Scheme, Mrs Henrietta Anyanna, told Inspen.

 

She attributed the loss to low level of awareness which has been the bane of insurance growth in most countries across the region.

 

She noted that in the Nigerian Market, Brown Card Premium Income has sky- rocketed from =N=3.5million in 2010 to =N=8.5million in 2012 and about =N=10million in 2013, adding that other member States have recorded significant rise in premium income figures thereby enhancing the liquidity  and increased the  capacity of the National Bureaux  to meet their financial obligations.

 

She the scheme was designed among others to - guarantee victims of road accident within the sub region fair and prompt payment for damages including bodily injury caused to Nationals of a West African country by non -resident motorists from other ECOWAS member states, promote trade and cultural integration among the countries in the West African sub region, develop international links and exchange as well as the extension of the insurance market within the sub region, establish a common system for claims settlement; which will lead to harmonization between the member states, laws and regulation governing motor insurance and offer a Scheme similar to the successful International Insurance Schemes in force in Europe (Green Card Scheme), in Central African sub region (Pink Card Scheme) and in the Arab Countries (Yellow Card Scheme)

 

“The Brown Card Insurance Scheme is basically a Third Party Liability Cover whereby members undertake to provide compensation for accidental damage to property, bodily Injury and Death arising from the use of Motor Vehicle within the sub region

Property include motor vehicles, buildings, and belongings of Third Party Accident victims

 

“The level of awareness is still very low. A lot of people do not know where to procure the document. As a result they fall into the hands of Fraudsters from whom they collect Fake certificate and end up being caught and sent to jail in neighboring countries

 

“The National Bureaux in various Countries have made substantial contribution towards raising public awareness. Enlightenment for the scheme is actually a continuous process. We believe that greater awareness for the scheme can be achieved if ECOWAS Brown Card becomes compulsory as it is in the Francophone Countries,” she added.