Dolapo, a 39-year old civil servant with Lagos State Ministry in Alausa, Ikeja Lagos is like one of the many people in Nigeria who do not believe that insurance pay claims, let alone the motor third party policy.
Back in February 2023, Dolapo had gone to renew his vehicle insurance policy when it expired, but was surprised when the insurance company told him that the premium for motor third party insurance has been reviewed upwards from N5, 000.00 to N15, 000.00 effective January 1st 2023.
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Dalopo’s cousin was to wed in Ijebuode the following weekend and he would need to travel with other members of his family. So, to avoid embarrassment from Police, road safety or VIO’ on the road, he grudgingly paid the N15,000.00 for the insurance policy, abusing the insurance staff who attended to him, but however collected his certificate and put in his Highlander SUV.
In June, he had closed from work and on his way home lost touch with his brake and ran into a Mitsubishi SUV 2018 model from behind, breaking one rear-light and one fog-light, which an auto repay company valued at N450,000.00.
Dolapo, realising that he had taken out a genuine motor third party insurance of N15, 000.00, having a claims limit of up to N3 million contacted his insurance company, and gladding the insurer took up the matter followed up with owner of the damaged vehicle and fixed it to the satisfaction of Dolapo and the victim.
Dolapo, who never believed in the genuineness of insurance, has become the one testifying and taking the message of insurance to colleagues, friends and families that truly insurance works.
Insurers Committee of the Insurance Industry realising that there are still many Dolapo’s across the country recently embarked on campaign to educate the public on the reviewed premium for motor insurance and the benefits therein.
The campaign, driven by the slogan ‘Small Premium, Big Coverage’ is designed in five languages including Yoruba, Igbo, Hausa, Pidgin and English to reach every segment of the population through radio, Television and other media platforms.
Speaking to Journalist during the launch of the campaign at the Nigerian Insurers Association, NIA, house in Lagos, Akinjide Orimolade, chairman, publicity sub-Committee of the Insurers Committee, said the campaign was to position the insurance market in a positive way before the insuring public in terms of the new rates.
Orimolade said, “Insurance companies have since commenced implementation of the new rates and consumer education continues to dominate discussions at various fora.”
The Federal Government, through the National Insurance Commission (NAICOM) in December 2022 reviewed the premium rate for motor insurance in Nigeria to become effective 1st January 2023.
In the new directive, private vehicles that were paying N5, 000 premium for N1 million Third Party Property Damage (TPPD) limit, are now to pay N15, 000 premium for N3 million TPPD, while owner good vehicles are to pay N20, 000 premium for N5 million claims limit, and staff busses are to pay N20, 000 premium for N3 million claims limit.
For commercial trucks and general cartage, they are to pay N100, 000 premium for N5 million TPPD limit; Tricycles N5, 000 for N2 million TPPD limit, and Motor Cycles N3, 000 for N1 million TPPD limit.
While for comprehensive motor insurance policy, premium rate shall not be less than 5 percent of the sum insured after all rebates and discount.
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Beyond this, the review also offer motorists plying the ECOWAS Region the benefits of third party liability protection under the ECOWAS Brown Card Scheme.
The card provides motorist complete guarantee for a prompt, fair and immediate compensation for any accident that may occur outside his habitual residence country.
According to NAICOM, the ECOWAS Brown card used by motorists plying within West Africa sub-region had been captured in the revised premium for third party motor insurance.
This means registered Nigerian vehicles with third-party motor insurance automatically purchased the ECOWAS brown card and is covered when in and around any of the West African countries.
