The Senate on Tuesday directed its Committee on Banking, Insurance and Other Financial Institutions to immediately organise a public hearing to investigate the result of a survey that revealed that over 12 million vehicle insurance policies in the country were fake.
The committee is expected to invite stakeholders in the insurance sector to deliberate on ways of ensuring the strict implementation of the six compulsory insurance schemes as provided in the Insurance Act and invoke sanctions where necessary, and submit its report within two weeks.
The Senate took the decision following a motion by the senator representing Kogi Central Senatorial District, Ahmed Ogembe, seeking the implementation of the compulsory insurance in Nigeria as provided for in the Insurance Act and Regulation, 2003
Ogembe told his colleagues that the result of a recent research in his possession indicated that out of the 16 million vehicles in the country, only four million were properly insured.
He explained that Sections 3(a) (b) and 4(1-4) of the Insurance Act, 2003 expressly stated the conditions for the registration of an insurance company in Nigeria, yet the provisions were being frequently flouted.
He also noted that there were 58 insurance companies registered with the National Insurance Commission, yet there were uncountable number of unregistered institutions selling worthless insurance certificates to unsuspecting members of the public.