In order to address insurance irregularities, NAICOM and FCTA have collaborated

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On Wednesday, April 3, 2024, Mr. Olorundare Sunday Thomas, commissioner for insurance and chief executive officer of the National Insurance Commission (NAICOM), paid a courtesy visit to Dr. Bello Abdul-Lateef, director of road transport service at the Federal Capital Territory Administration (FCTA).

A statement from the commission stated that the visit’s objective was to investigate potential areas of cooperation in order to combat two pressing problems: the spread of fraudulent third-party vehicle insurance and the practice of evading the insurance system by paying premiums in full.
Concerns about people renewing their vehicle details without getting the necessary insurance coverage were brought up by the director of road transport service during the meeting.

He informed the commissioner that, as a result of dealing with unofficial middlemen, several people were discovered to be paying greater premiums—for example, N15,000—but only receiving insurance coverage worth N4,000.

Abdul-Lateef claimed that his office has automated 98% of its processes and made it possible for people to renew their vehicles online, among other technical options, to deal with this issue.

Abdul-Lateef was apprised by the insurance commissioner of the increased third-party automobile insurance that went live on January 2, 2023. He announced that in order to better safeguard drivers and passengers, the insurance cost had jumped from N5,000 to N15,000 and that the benefits had been enhanced from N1,000,000 to N3,000,000.

In order to decrease occurrences of third-party motor insurance anomalies, Thomas stressed the importance of NAICOM and the FCTA’s Road Transport Service working together to establish appropriate insurance management systems through aggressive enforcement of regulations.

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