12 Million Nigerian Motorists Carry Fake Insurance Papers

Despite the benefits from motor insurance cover,
the Nigerian Insurance Association says over 12
million Nigerian motorists carry fake insurance
Investigations by stakeholders in the sector,
revealed that many motorists prefer patronizing
fraudsters for insurance papers rather than
obtaining valid certificate that would provide cover
and compensation in times of accident.
Nigerian Insurance Association boss, Mr. Sunday
Thomas who spoke to reporters in Asaba, at the
weekend said that the development had not gone
down well with operators in the industry who have
decided to collaborate with law enforcement
agencies to put an end to fake insurance business
in Nigeria.
He said that the industry had continued to record
increase in the number of genuine insurance
policies registered in its Nigerian industry data
base, adding that “the vehicles on the Nigerian
roads are between 16 million and 17 million but
what we have registered in our data base is about
4.3 million, it is possible that insurance cover of
some expired and have not been renewed.’’
Noting that the association was trying to separate
the expired policies from the current ones to
determine the actual number of vehicles with
genuine insurance, Thomas explained that the
industry data base was introduced to curb the
proliferation of fake motor insurance papers,
provide information on the details of vehicle on the
Nigerian roads as well as enhance the verification
of certificates in owners’ possession.
He said from available statistics on the number of
motorists that are using fake insurance papers, it
was obvious that many motorists are unaware of
the position of the law on defaulters,.
He said section 68 of the Insurance Act 2003
states that “ no person shall use or cause any
other person to use a motor vehicle on the road,
unless a liability which he may thereby incur in
respect of the damage to the property of third
parties is insured with an insurer registered under
its act, the insurance states that the law shall
cover the liability of not less than one million and
that a person that contravenes the provisions of
that section of the law commits an offence and will
be liable on conviction to a fine of N250,000 or
imprisoned for one year.”

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