By Sunday Etuka, Abuja
The National Insurance Commission (NAICOM) and Directorate of Road Traffic Services (DATS) are exploring areas of collaboration to check fraud in the payment of motor insurance.
Commissioner for Insurance/Chief Executive Officer, NAICOM, Mr. Olorundare Sunday disclosed this when he paid a courtesy visit to the Director, DRTS, Dr. Bello Abdul-Lateef on Wednesday in Abuja.
The NAICOM boss said, the purpose of the visit was to formally explore areas of collaboration with regards to curbing instances where people circumvent the system by paying lower premium than expected, and the issue of fake third-party motor insurance.
He informed the Director, DRTS on the enhanced third-party Motor Insurance which became effective 2nd January, 2023, increasing its premium from N5,000 to N15,000 and also its benefits from N1,000,000 to N3,000,000 covers respectively for the protection of road users.
He mentioned that effective collaboration between NAICOM and DRTS would help reduce the incidences of Third-party motor insurance irregularity by enhancing active policing to ensure adequate Insurance management system.
In his response, the Director, DRTS, noted that a lot of individuals renewing their vehicle particulars were not getting value for the insurance premium being paid as they did not validate the insurance policies after purchase even though they might have paid N15,000; whereas the cover they were actually given cost N4,000 considering the fact that they may have engaged unauthorised persons to help process their request.
The Director, DRTS further mentioned that they are now leveraging technology to curb such issues and that 98% of its processes are now automated.
In addition, he stated that individuals can commence the process of their vehicle particulars renewal from the comfort of their homes.
