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Chuks Udo Okonta
The Nigerian Insurers Association (NIA) has raised concerns about the proposed contribution of one per cent of motor insurance net premium to a fund for road accident victims.
The Chairman of NIA Kunle Ahmed, said this in his presentation at the public hearing of the Reform Insurance Bill at the the National Assembly in Abuja.
He expressed misgivings on using the funds of insured individuals to support those who do not have insurance.
He suggested limiting the contribution to 0.5 per cent and urged the implementation of measures to ensure all vehicles in Nigeria are insured.
“We have about 11 million cars in Nigeria or 13 million cars and about 3 million or 3.4 million cars insured. In other words, we are saying that the small people that are insured should take care of the larger number of people that are not insured. We suggest we should limit this to 0.5 per cent. We must fashion up a way of ensuring that all cars in Nigeria are insured”, he argued.
The Bill proposed N2 million for treatment of accident victims from uninsured vehicle and unidentified driver
According to the Bill, sny hospital known to have treated any person involved in any motor accident by an uninsured vehicle or unidentified driver should be compensated, provided
such hospital expenses shall not exceed the sum of ₦2,000,000.00 for any
person treated and this may be reviewed by the National Insurance Commission (NAICOM) from time to time.
The Bill in Section proposed an establishment of a fund to be known as the Road Safety and Accident Victims
Compensation Fund (hereinafter referred to as “the Fund”) into which shall be paid one per cent of the net premium received by every insurer in respect of insurance of motor
vehicles.
The provision entitled; Road accident
victims compensation fund, in Section
100 (1) said there is established for the Fund a Road Safety and Accident Victims Compensation Committee (in this Bill referred to as “the Compensation Committee”) responsible for over-seeing the management of the Fund and (2) noted that the Compensation Committee shall consist of — a Chairman representing the insurance industry (Nigerian Insurers
Association) appointed by theCommission;
(b) 3 persons appointed by the Commission, one of whom must be a medical practitioner with cognate experience in orthopaedic and trauma medicine;(c) two representatives of the Commission;(d) a representative of the Federal Road Safety Corps;(e) a representative of the Nigerian Police Force;(f) a representative of the Federal Fire Service;(g) a person to be appointed by the State Traffic Agencies on rotation basis among the States of the federation, and (h) a representative of the Federal Ministry of Finance,h from the directorate cadre.
Subsection (3) noted the amount due from every insurer pursuant to subsection (1) of this section shall be paid quarterly to the Fund which shall be administered and disbursed, on the recommendation of the Compensation Committee, by the Commission.
Subsection (4) stated the Commission shall on the recommendation of the Compensation Committee administer and disburse monies accruing to the Fund as follows —(a) 10 per cent to the Federal Road Safety Commission as grant for the procurement of equipment; (b) 10 per cent to the Nigeria Police Force as grant for the procurement of equipment; (c) 10 per cent to road-traffic agencies for the procurement of equipment; (d) 65 per cent into a separate fund out of which the Commission shall pay compensation, in accordance with regulations made by the Commission, to any person in respect of death or bodily injury following a motor vehicle accident caused by an uninsured vehicle or an unidentified driver and expenses
reasonably incurred by any hospital known to have treated any person involved in any motor accident by an uninsured vehicle or unidentified driver provided such hospital expenses shall not exceed the sum of ₦2,000,000.00 for any person treated and this may be reviewed by the Commission from time to time; and (e) not more than five per cent as cost of administration and management of the fund.
Subsection (5) provides that an insurer who defaults in making payment as required under subsection (1) of this
section is liable to a penalty of a sum equal to five times the amount payable, provided that persistent non-compliance with the requirement of subsection (1) of this section shall be a ground for suspension of authorization to underwrite motor insurance policies by the Commission.
According to subsection (6) subject to the approval of the Minister, on the recommendation of the Commission, the
percentage contributions stipulated in subsection (4) of this section may be reviewed every five years after the commencement of this Bill.
Section 101 stated that any person who is found guilty of an offence under this Part for which no specific penalty is provided is liable in respect of a first conviction, to a fine of ₦50,000.00 or to six months imprisonment or to both fine and imprisonment and in the case of a second or subsequent conviction to a fine of ₦100,000.00 or to imprisonment for a maximum term of 12 months or to both fine and imprisonment.
