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Chuks Udo Okonta
Insurance operators stand to reap over N60 billion premium yearly from motorcycle underwriting business if they are able to provide cover for the over 20 million motorcyclists in the country.
According to the President, National Commercial Motorcycle and Tricycle Owners and Riders Association of Nigeria, Usman Gwoza, over 14 million motorcycle operators are registered with the association, while the number of those operating motorcycle business in the country are over 20 million.
Therefore, going by the new motorcycle premium rate, which was put at N3,000, providing cover for the over 20 million cyclists would yield over N60 billion for insurance operators.
Experts believed that for the insurance industry to achieve this feat, operators must rise to the occasion by engaging on aggressive marketing and living up to their claims responsibilities.
The experts also tasked insurance industry operators to separate motorcycle underwriting from motor portfolio, a step, they said would enable operators effectively evaluate their performance on motor and motorcycle.
Speaking with Inspenonline an Auto Registration Expert, Niyi Shobande, said motorcycle riders, do purchase third party and comprehensive insurance policies at the point of registering their motorcycles, adding that some of them are also forced to renew their policies by law enforcement agents.
He however stated that most motorcyclists feel reluctant to renew their policies due to bad attitudes exhibited by some insurance practitioners whenever there are claims to be made.
Managing Director/CEO Universal Insurance Plc, Ben Ujoatuonu, told this medium that his firm which is one of the leading providers of motorcycle insurance, is work assiduously to separate motorcycle business from motor portfolio.
He stated that the decision would enable the firm clearly monitor its performance on motor and motorcycle, stressing that the new premium regime had also made such a decision worthwhile.
According to the National Insurance Commission (NAICOM) insurance operators as at third quarter of 2022, had generated N45.3 billion from motor insurance business which is made up of vehicles, tricycle and motorcycle.