Nigeria’s motor insurance business is seen to boom when the industry implements automation of the Ecowas Brown Card Insurance scheme already in use in many markets.
The automation will enable players issue motor insurance policies beyond the local market to cover Ecowas countries that are in agreement with the scheme, according to a statement issued to mark the 40th Anniversary of the scheme.
Ecowas Brown Card Insurance Scheme was established on 19th May 1982, following the creation of the Economic Community of West African States (ECOWAS).
It was designed as a common scheme for the settlement of claims arising from accidents in the course of the free movement of goods and persons within the sub-region.
Henrietta Anyanna, secretary general, Nigerian National Bureau said although the automatic of the Brown Card regime is yet to be adopted in Nigeria, it has and is still fulfilling the purpose for its establishment.
She said this has the capacity to unlock the full potential of the motor insurance industry if the resources are well managed.
Anyanna noted that claims worth more than N84 million have been paid to Nigerian third-party victims of accidents as at 31st December 2021, even in the absence of an Automatic Ecowas Brown Card regime.
“Imagine what the situation will be like, after the official implementation of the Automatic Brown Card in Nigeria. The scheme is putting smiles on the faces of victims as well as transforming lives of the less privileged forever, she said.
Ganiyu Musa, is chairman, Nigeria National Bureau as well as the chairman of the Council of Bureaux.
Nigeria has the largest market in the ECOWAS space with 22 member companies presently, and so the implementation of Automatic Ecowas Brown Card will bring on board all motor insurance underwriting companies, she said.
This Implies, that local insurance cover will be issued along with a Brown Card cover to ensure the ECOWAS Risk we are exposed to.
Anyanna said Ganiyu Musa before the end of his tenure drives to set up a structured database for information retrieval that will fast-track claims payment, harmonize the constitution of the entire scheme and its compensation regime, as well as set-up a cross-border regulatory body.
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The Brown Card Scheme is driving economic development as well as enhancing the social standard of the people, integration of member states, while transforming the insurance industry within the Ecowas space in the interest of all stakeholders, she noted.
The Brown Card Scheme facilitates prompt and fair settlement of claims to road accident victims caused by motorist outside their country of residence.
In addition, the scheme facilitates and provides financial guarantee to Ecowas Community Motorists and their vehicles within the sub region. This scheme is similar to the Green Card in Europe.
The Scheme operates through 14 (fourteen) National Bureaux of Member State and the National Bureau in each Member State ensures the availability of Brown Card for local motorists, conducts investigations and settles claims arising from an accident caused by holders of Brown Card.
