NIID: More than 7m vehicles operate with fake insurance

By Rosemary Onuoha

More than seven million vehicles in the country operate with fake insurance, as they are not registered on the Nigerian Insurance Industry Database, NIID.

 

 File: Insurance

Vanguard Insurance investigations showed that only 4.5 million vehicles out of the 12.5 million vehicles plying Nigeria’s roads are registered on the NIID. This implies that about 7.3 million vehicles are not operating with genuine motor insurance certificates.

Furthermore,    out of the 4.5 million vehicles on the NIID, 75 percent have third party motor insurance while    25 percent carry comprehensive cover.
Speaking to Vanguard on this    development, Executive Director of Allianz Nigeria, Mr. Owolabi Salami said that the insurance industry need to come up with a strong proposition on how to curb fake motor insurance in the country.
Salami said. “It is sad that fake motor insurance certificates are still peddled about by many motorists. The insurance industry needs to deal with this issue by coming out with a strong proposition on how to curb this menace in the country.”
Also speaking on the issue, Managing Director of Consolidated Hallmark Insurance Plc, Mr. Eddie Efekoha said that fake motor insurance is still controlling a huge chunk of the market.
Efekoha said that a situation whereby most insurance companies have offices only in Lagos, Abuja and Port-Harcourt is a contributing factor to the thriving fake motor policy business, adding that fake insurance thrives in states where insurance companies are absent.
The NIID is a platform of the NIA aimed at getting more vehicles and Nigerians into the insurance net and boosting the culture of insurance among the citizens.    The platform provides protection to Nigerians against the activities of insurance fraudsters, particularly the third party motor insurance certificate racketeers.