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Chuks Udo Okonta
For the Nigeria Police Force (NPF) to effectively enforce purchase of third party motor insurance by motorists, the insurance industry has a lot to contribute.
To a large extent, the insurance industry which is the greatest beneficiary of the enforcement, would either make or mar the initiative.
The Inspector General of Police, Federal Republic of Nigeria, Dr. Kayode Egbetokun, who has pledged to commenced the enforcement on February 1, 2025, has also enumerated the benefits of the enforcement to insurance sector; citizens and the economy.
Expectations from insurance sector
*Education and awareness
Now that the insurance industry has secured the full backing of the Nigeria Police, insurance regulator and practitioners should never go to bed and sleep, thinking that all is over.
They should understand that this is now the time to begin coordinated education and awareness campaign. They should embrace all media and non media channels to showcase to the public names of registered insurance companies in Nigeria. How to verify genuine motor insurance policy through the Nigerian Insurance Industry Database (NIID) and more.
*Renewed engagement with Police Officers
The insurance sector should urgently commence robust engagements with Police Officers who are to enforce the law.
The Officers should be educated on how to verify genuine motor policies through the Nigerian Insurance Industry Database.
The sector should also ensure that offenders are not just set free by the law enforcers, but be compelled to buy the policies as part of the sanctions.
*Robust information technology deployment
Now that the law is to be fully enforced, insurance operators should strengthen the Nigerian Insurance Industry Portal (NIIP) and their information technology platforms to enable motorists buy policies seamlessly.
*Prompt upload of policies on NIID
Insurance operators should ensure that motor insurance policies are promptly uploaded on the Nigerian Insurance Industry Database to save policyholders embarrassments by the policy.
*Improved service delivery
Most insurance companies don’t have data of their motor third party policyholders. This challenge stems from refusal of insurance agents and brokers to submit their clients data to insurers due to lack of trust.
The lack of third party motor policies data by insurers, deny them the opportunity to remind policyholders of their renewal date of which many of them would have forgotten.
*Shun rate cutting
Now that the law is to be enforced, insurance operators should ensure they sell their policies at the statutory approved rates.
*Prompt Claims payments
With the enforcement, insurance operators should brace up for increase in claims payments. As more people buy genuine motor policies, the filing of claims would also increase.
Insurance operators should reciprocate the enforcement with prompt payments of genuine claims.
While the insurance sector regulator and operators celebrate the renewed support from the Police, they should also know that the enforcement is coming with task on them in the area of claims payments, improved service delivery, awareness, education and more.
The enforcement would also provide them the opportunity to prove people with negative perception that they don’t pay claims wrong, by ensuring that all genuine claims are settled promptly.
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