Insurance industry loses over N60bn to fake motor papers yearly - NIA

From left: Director-General Nigerian Insurers Association, Sunday Thomas;  NIA Chairman and Managing Director/CEO of Linkage Insurance Plc, Godwin Wiggle and Director Legal, Technical and Admin, Mrs Lawunmi Idowu at the event.

Chuks Udo Okonta

The Insurance Industry is said to be losing over N60 billion yearly to fake motor insurance racketeers the Chairman Nigerian Insurers Association (NIA) Godwin Wiggle, has said.

He disclosed this today at a media parley, adding that out of the 15 million vehicles  in the country, only 3 million are insured properly, thereby leaving 12 million in the hands of fake insurance certificate racketeers.

To arrive at the loss, he noted that the commonest class of motor insurance which is third party goes for N5,000 and that, if 12 million vehicles are uninsured that would amount to N60 billion. He noted that if comprehensive policies are considered the amount would over shoot N60 billion.

He stressed that the association is working assiduously to kick the racketeers out of their illicit operations through the Nigerian Insurance Industry Database (NIID) initiative which was designed to enable operators upload data of insured vehicles and also help the public verify the genuineness of the papers they possess.

He called on the public to ensure they patronise registered underwriters, brokers and agents, stressing that fake papers would always deny people claims at the time of incidence.

Wiggle also called on government agencies saddled with the responsibility of enforcing stipulated laws to perform their duties as expected. He added that lack of enforcement of laws has remained a major setback to growth and development in the country.

He also called on the government to show leadership by buying insurance, adding that enforcement of laws will cause insurance premium to soar.

While empathising with civil servants that their state governments have not paid salaries, he called on government to ensure they plan and represent their people effectively. He called on government at all levels to shun wastes, embrace insurance which remains the best way to mitigate risks.

Wiggle said over 7000 uploads have been made by underwriters into the recently deplored marine insurance module under the NIID.