Motor Insurance: Fined for an insurance error, who’s responsible?

Babalola had taken out an insurance cover for his Toyota Highlander SUV and as usual paid full premium to his insurance company.

He was confident that with the insurance certificate in his hand, he was not going to have problems with any of the security agencies at checkpoints, because he has taken the appropriate cover for his vehicle.

On his way to work one Wednesday morning, while veering into Ikorodu Road from Oshodi Express, he found on ground a team of Vehicle Inspection Officers (VIOs) and Men of the Road Safety flagging down incoming vehicles and checking their particulars.

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Before it got to his turn, his Toyota Highlander had been scanned with a digital device in the officers’ hand, and he was asked to pull out of the road because traffic was already building-up from behind.

Not worried that his vehicle particulars could have any issue, he proudly pulled out of the road, asking the VIO officers what his offence was. “I have my particulars in order, why are you stopping me this morning”.

When the officer on duty approached Babalola and told him that he did not have insurance, it was a surprise to him because he had taken out a comprehensive insurance cover for the vehicle.

The challenge was that insurance of the vehicle though genuine and issued by a genuine insurance company, it was not captured in the digital platform where insurance vehicles are uploaded.

For the insurance of the vehicles as claimed by the VIO official, Babalola was fined N20, 000.00 for not having insurance.

Having obtained the policy through an insurance broker, Babalola was asked not to worry that his insurance company will be responsible for any costs emanating from this error because it is because of their own negligence.

When asked who will be responsible for extra costs borne by the insured, the leadership of the Nigerian Insurers Association said they are not year familiar with this report, but that the system is programmed to upload every motor insurance policy issued out to customers.

Insured vehicles in Nigeria are captured in the Nigerian Insurance Industry Database (NIID) managed by the Nigerian Insurers Association, from where other security agents upload their information for vehicle insurance verification.

Today, wherever it is in Nigeria, with the help of technology and mobile phone, motor insurance policyholders can verify the genuineness of their policies online real-time, using a dedicated platform or code such as askniid.org or the USSD code *565*11#.

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To confirm this visit, www.askniid.org or by sending Short Messaging Service (SMS) to the USSD code *565*11# on any mobile phone with or without internet access. On the other hand, you can just log on to website www.askniid.org and follow the instructions laid out. You could enter your Vehicle Number or Insurance Policy number to confirm its authenticity. Once your particulars are entered, the result will appear right in front of you.