An insurance expert, Chris Ogbaisi, has canvassed that the proposed compulsory group personal accident for all road passengers in transit, should be domiciled with micro insurance operators.
Ogbaisi, stated this in a comment section of the report by Inspenonline, stating that the scheme be driven as a micro insurance scheme and not by the conventional insurance, stressing that it would encourage early growth of micro insurance and attracts investors especially conventional insurance company to divest into micro insurance business .
According to him, “This is the only way or avenue for deeper market penetration of insurance in Nigeria.”
He submitted that products of the scheme, should be targeted at community pricing through their various associations and that to adequately enforce this policy , executives of those associations should be made to be major stakeholders and earn commission which easily motivates.
“It should be beyond collecting premium rather value creation and build synergies in order to sustain the scheme and have good retention,” he posited.
He noted that the scheme should be targeted at passengers affected with stolen luggage while in transit, medical expenses in the event of accident without police report, temporary and permanent disability as a result of accident while in transit and infact, it can include burial expenses to the tune of 50k in the event of death during the accident.
Inspenonline had earlier reported that Nigerian Insurers Association (NIA) and Global Sight Services Limited are working with the Federal Government, through Federal Road Safety Corp (FRSC) to make compulsory a group personal accident for all road passengers in transit.
The Director-General of NIA, Mrs. Yetunde Ilori, said this in her report presented to members of the association at the 52nd Annual General Meeting (AGM) today in Lagos, adding that the initiative would help reduce the rate of untimely death arising from accidents.
She also said the association is working closely with the Lagos State Vehicle Inspection Service (VIS) on enforcement of third party motor insurance in the state, stressing that out of the estimated 12 million vehicles in Nigeria, only 3,013,205 third party policies are in force.
Mrs. Ilori stated that the NIA and VIS in Lagos State are collaborating on windscreen and head lamp damage insurance extension cover for third party motor insurance policyholders.
