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Chuks Udo Okonta
Insurance operators seemed divided over the proposed N20,000 motor third party premium, which bill is presently at the Senate for considerations, Inspen can report.
Findings revealed that some operators who considered the proposed premium as transformational want the industry to support the bill through massive awareness campaign, while those who feel it is ill-timed are waiting for public hearing to kill the bill.
An elder statesman in the industry told Inspenonline that it is worrisome for operators who ought to have pool resources to support the bill through massive awareness, want it killed.
Investigations revealed that those who opposed the bill, believed the proposed premium would deter the public from buying genuine policies, thereby heightening the menace of fake insurance documents.
The bill which wants to increase motor vehicle third party insurance premium from N5,000 to N20,000 has been read the second time and referred to Senate Committee on Banking, Insurance and Other Financial Institutions.
The bill which was sponsored by Senator Umaru Kurfi – Katsina Central, and entitled: SB 276 Motor Vehicles Third Party Insurance Act (Amendment) Bill, 2016; seeks to amend the Act to ensure the accomplishment of objectives of the compulsory third party insurance cover.
According to Senator Kurfi, increasing the premium from N5,000 to N20,000, shall ensure effective settlement of claims.
He also proposed the setting up of a fund by taxing motor underwriters, stressing that the fund should be used to settle victims of accident who could not obtain compensation or where an insurance company becomes insolvent or goes into liquidation before judgment was obtained by the victim.
Information obtained from the website of the National Assembly on the bill reads: “Motor Vehicles Third Party Insurance 2004 (Amendment) Bill, 2017 (SB.276);, Motion Made;, That a Bill for an Act to Amend the Motor Vehicles Third Party Insurance 2004 to facilitate the accomplishment of objectives of compulsory Third Party Insurance and for Related Matters, 2017 be read the Second Time (Senator Umaru l. Kurfi – Katsina Central);, Debate;, Question put and agreed to;, Bill accordingly read the Second Time and referred to the Committee on Banking, Insurance and Other Financial Institutions to report within Four (4) weeks; senate (Votes and Proceedings) Jan 2017.”
