Insurance Sector Loses N46bn to Uninsured Vehicles

• Insurance Sector Loses N46bn to Uninsured Vehicles

Insurance sector continued to suffer enormous losses as many vehicle owners are either using fake insurance policy or refused to renew expired policy.

According to the Nigerian Bureau of Statistics (NBS), out of the estimated 11.7 million vehicles in the country at the end of second quarter of 2018, only 2.5 million vehicles were registered in the motor insurance policy record.

The value of the policy of the 9.2 million uninsured vehicles was put at N46 billion, going by the fixed price of N5,000 for third-party vehicle insurance used for saloons and SUVs, and the N7,500 charged for commercial vehicles and in some cases N5,000.

Speaking on the development, Lanre Ojuola, the Nigerian Insurers Association (NIA) Director of Operations, at the weekend, affirmed that the number of active motor insurance policies registered on the Nigerian Insurance Industry Database (NIID) now stood at 2.5 million, even though the total registered motor policies on the platform is over three million.