The Directorate of Road Transport Service of Federal Capital Territory Authority (FCTA) has agreed to work with the National Insurance Commission (NAICOM) to curb the menace of the proliferation of fake third party motor insurance in the capital city.
The Commissioner for Insurance and Chief Executive Officer of NAICOM, Olorundare Sunday Thomas disclosed this on Wednesday when he visited the Director, DRTS, FCTA, Bello Abdul-Lateef in his office.
.Thomas said the purpose of the visit was to formally explore areas of collaboration with the agency on how to curb a situation where persons circumvent the system by paying lower premium than expected.
The Commissioner said the visit was also to seek partnership with DRTS on how to tackle the menace of fake Third Party Motor Insurance.
He informed the Director, DRTS about the enhanced third-party Motor Insurance scheme by NAICOM, which became effective on January 2, 2023.
Under the scheme, the Commissioner said the premium cover on vehicles was increased from N5,000 to N15,000, while its benefits were raised from N1m to N3 covers respectively for the protection of road users.
The Commissioner said effective collaboration between NAICOM and DRTS would reduce the incidences of Third-party motor insurance irregularity, by enhancing active policing towardd adequate Insurance management system.
The Director of DRTS said a lot of individuals renewing their vehicle particulars were not getting value for the insurance premium paid.
He said these vehicle owners do not validate the insurance policies after purchase despite paying N15,000, whereas the cover they were actually given cost N4,000, considering that they may have engaged unauthorised persons to help process their request.
The Director, DRTS pointed out that they were now leveraging technology to curb such issues, with 98 percent of its processes were now automated.
Also, the Director said under the new system individuals can commence the process of their vehicle particulars renewal from the comfort of their homes.
