Its less than two days before the enforcement of Third Party Motor Insurance Policy by the police and International Energy Insurance Plc (IEI), a Norrenberger company is calling on motorist to ensure they have a valid policy to avoid falling short of the law.
The Managing Director/CEO of the company, Mr Olasupo Sogelola who made this call urge Nigerians who already have a valid policy and suffer damage or injury from accidents to always reach out to their insurance companies to make a claim.
He applauded the Inspector-General of Police (IGP), Kayode Adeolu Egbetokun for his quest to ensure full scale enforcement of the policy across the country from February 1, 2025, noting that the enforcement will generally improve insurance acceptability and deepen penetration in the industry.
He however said insurance operators need to look into how they can continuously ensure that the third party motor policy is made available and the distribution model is properly followed through because they will not always have the police going after third party for them.
He said: “We as operators need to find a way of attracting the people to the third party motor insurance. Beyond saying we will pay your claim, we must do things that will make people to naturally want to buy the policy. So, we need to start to look at up scaling and improving third party and looking at what more we can do. We need to make it available and ensure that they are variants. There are so many things that go with it like incentives and whatever to retain and maintain all the people that will be buying.
“This is because apart from police enforcing third party, we ourselves must be prepared to give what is right and that is to make sure that claims are paid promptly on every third party knowing fully well that with the volume that is expected the claims ratio is still very low. We need to do more than just clapping for police. The police will do it by doing their beat but after this first year, how do we ensure that we continuously get it right. This is the question we need to ask ourselves and find lasting solutions to. We cannot be running to police every year to come and help us to enforce third party. Beyond enforcement, we have to look at our distribution models”.
Advising motorist on claims, he said: “When people have third party claims, they should ensure they look on their policy or certificates to find a link on how to report claim or telephone numbers to make calls and report the claims.
“More importantly people should be honest about claims and not just come with fictitious claims looking for somebody who’s going to spray their cars for them. Usually third party claims are on the low severity claims level with few of them as high severity claims where there is life or property damage. But where it is just a normal accident, there is usually low severity.
“However experience has shown that people also always want to find a way of adding more to their claims and this can discourage an insurance company from paying such claim”.
Sogelola pointed out that for them at IEI, they make payment of genuine claims below N200,000 within 24 hours.
He stressed that as an insurance company, they are in the business to pay claims and they will do this all the time.
We have put this to test and it has worked for us since we came back into the market and we believe that everybody selling third party should also be able to make this available, he added.
IGP Egbetokun had along with the National Insurance Commission (NAICOM) fixed February 1, 2025, to fully commence the enforcement of third party motor insurance policy in Nigeria.
While affirming the importance of third-party insurance, he said Section 68 of the Insurance Act and Section 312 of the 1945 Motor Vehicle (Third Party Insurance) Act mandated all vehicle owners to possess third-party insurance before operating their vehicles on public roads.
He urged Nigerians to comply with the law, as violation is punishable by imprisonment, fines, or both.
He noted that the NPF remained steadfast in collaborating with all MDAs and companies in ensuring that the protection of lives and property of all citizens of the Federal Republic of Nigeria remains paramount.
The Commissioner for Insurance/Chief Executive Officer, NAICOM, Mr. Olusegun Ayo Omosehin had earlier congratulated the IGP on his plan to enforce third party motor insurance.
He emphasised the need for the assistance in ensuring public compliance with insurance laws.
