Home Insurance Digest Vehicle insurance: FG to deploy technology to boost premium revenue

Vehicle insurance: FG to deploy technology to boost premium revenue

The federal government has concluded arrangement to deploy technology that would control vehicle registration to ensure that premium paid for vehicle insurance are channeled to appropriate quarters in the country.
The National Insurance Commission (NAICOM), through its Commissioner for Insurance, Mohammed Kari, said this during a parley with insurers, brokers and agents in Abuja, recently
He said the Federal Government plans to constitute a body comprising the Commission, Federal Road Safety Commission (FRSC), Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service to checkmate and control motorists’ activities through the deployment of the technology.
According to him, the minister believes in the power of technology and has asked that it be fully deployed to increase premium income in the industry. He was optimistic that more tax will be earned because a proper record of vehicles in the country would be ascertained.
He said: “The minister has said, she is constituting a body which will comprise NAICOM, Federal Road Safety, Federal Inland Revenue and the Customs. By using the Bank Verification Number (BVN) technology, all vehicles in Nigeria will be registered to an individual.
She also believes that the tax money will help people know how to avoid use of 10 cars or whether they pay their taxes. Insurance will automatically be charged on vehicles because a number like the BVN will identify it. The motorist will automatically get a notice.
Technology will assist us in all of these plans.” Kari stated that NAICOM on its part, beyond providing leadership and a sane regulatory environment for insurance entities to operate, has continually introduced market developmental programmes and initiatives aimed at increasing penetration and assisting insurance institutions enhance their premium revenue generation and, by so doing, increase the industry contribution to the nation’s Gross Domestic Product (GDP).
He said: “In 2009, the Commission launched the Market Development and Restructuring Initiatives (MDRI) programme. This is a medium term industry development plan designed by the Commission with focus on the enforcement of compulsory insurance products, increase insurance awareness, reduction in incidences of fake insures/insurances and increase agency reform.
“This initiative was successfully launched in the six geo-political zones and Abuja. The Commission also followed up with massive awareness campaign, roadshows and seminars again in all the zones of the country. These efforts were geared towards making the insurance institutions richer and better.
The Commission has also recently embarked on the sensitisation of Ministries, Departments and Agencies (MDAs) of government on the compelling need for adequate insurance of their assets.
We have equally canvassed the engagement of insurance professionals to handle their insurances to ensure they procure proper insurance policies,” he added. Recently, the Senate mandated its Committee on Banking, Insurance and other financial institutions to look into recent findings that showed that over 12 million motorists in the country use fake insurance papers.
Stakeholders including NAICOM were charged to deliberate on ways and means of ensuring the strict implementation and compliance with the six compulsory insurance schemes as provided in the Act and invoke sanctions where necessary.
The resolutions followed a motion by Senator Ahmed Salau Ogembe (Kogi Central) and eight others entitled, “Implementation of the compulsory insurance in Nigeria as provided in the ‘Insurance Act Regulation, 2003.’ Senator Ogembe lamented that of the 16 million vehicles in the country only four million were properly insured.

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