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Chuks Udo Okonta
Any 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 Insurance Reform Bill has proposed.
The Bill which has been passed for second reading at the Senate stated in Section 99 that there is established 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 the Commission;(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,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 5 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.
