Stakeholders call for amendment of third party insurance law to achieving fair compensation
Some stakeholders in the North-east on Sunday called for the amendment of Third Party Motor Insurance law in the country to achieving fair compensation to beneficiaries.
The stakeholders made their views known in separate interviews with news men in Yola, Maiduguri and Damaturu while reacting to the Inspector-General of Police, Mr Kayode Egbetokun’s directives regarding the enforcement of Mandatory Third Party Insurance policy.
They observed that the product is failing to provide fair value to beneficiaries, years after its introduction.
Supreme news reports that the Third Party Motor Insurance is an insurance policy that shields you from the cost of damage or injury caused by you to another person or the person’s vehicle or property.
A Damaturu-based lawyer, Mr Sadiq Usman, has called on the National Assembly to enact a Procedural Law for compensation of victims of Third Party Insurance violation.
Usman said that the Third Party Insurance as provided by the Insurance Act 2004, did not clearly prescribe how and when a beneficiary could exercise his or her right.
“If, for instance, a vehicle is damaged by an insured motorist, the Act provides that the victim’s vehicle must be repaired. But the law did not clearly state how to go about seeking for redress.
“Who is to carry out the repair? When will the vehicle be repaired ? Is it within one week, two weeks or one month?
“What is the fate of an unregistered driver? Can he or she be compensated under the Act,” he asked?
The lawyer said these gaps, among others, in the Act needed to be addressed for proper implementation of the Third Party Insurance in the country.
He, therefore, called on government at all levels to embark on stakeholders’ engagement and massive awareness campaign for seamless enforcement of the law.
Usman said Section 68 of the Act provided for Third Party Insurance to cover motor vehicle liability of not more than N1 million.
“This means that the extent of damages that a Third Party Insurance company will pay is not more than N1 million.
“Violation of the law, upon conviction, attracts N200,000 fine or one year imprisonment,” he said.
The lawyer said that Sections 17 (1) and 17 (2) of the Act gave the police and operatives of the Federal Road Safety Corps (FRSC), respectively, the powers for enforcement.
Usman listed beneficiaries of compensation under the Act to include pedestrians, passengers and drivers whose property, buildings, vehicles and other structures were damaged.
Alhaji Karimi Goni, Chairman, National Union of Road Transport Workers (NURTW), Yobe branch called on the Federal Government to prevail on insurance companies to always pay compensation to beneficiaries as and when due.
“Throughout my over 30 years driving career, I have never seen anyone who benefitted from insurance, not even the one we have been paying for before the revival of Third Party Insurance,” he said.
Similarly, stakeholders in Adamawa also called for the amendment of the third party motor insurance policy to ensure adequate compensation for accidental victims.
A motorist, Mr Jude Maiwada, said the policy was designed to protect motorists from liabilities that may arise in the event of an accident involving a third party.
He said the policy was meant to cover the cost of repairs or damages should a motorist be involved in an accident with another vehicle.
Maiwada, however, expressed worried over the poor implementation of the policy in Nigeria, saying insurance companies have not been living up to expectations.
“Over the years, the policy has been in place but served as a means for insurance companies to collect money from motorists without providing reasonable settlement of claims in the event of an accident.
“Motorists pay between N5,000 and N7,000 annually, yet when accidents occur, disputes arise between motorists, third parties, and law enforcement agencies, who often try to shift blame to avoid payment of claims,” he said.
Maiwada urged insurance companies to fulfil their obligations and law enforcement agencies to ensure prompt and accurate payment of claims.
“If properly implemented, this policy would be highly beneficial to motorists and contribute significantly to road safety,” he added.
Another motorists in Maiduguri, Musa Ibrahim, said he has never heard of an insurance company that compensate victims of road accidents in Borno.
“I have been paying for third party insurance for years, but I have never seen anyone get compensation when an accident happens.
“Most people just fix their cars themselves. What is the guarantee that this enforcement will change things,” Ibrahim asked?
However, Hauwa Abubakar, a private vehicle owner, argued that insurance policies should be made more accessible and trustworthy before strict enforcement.
“We need transparency. If we pay for insurance, there should be a system that ensures we actually benefit from it in case of an accident. Otherwise, it just becomes another financial burden on motorists,” she said.
Alhaji Umaru Babba, Chairman of the Nigeria Union of Road Transport Workers (NURTW), Adamawa Chapter, however, said the union had commenced sensitising its members on the importance of registration following a stakeholders’ meeting.
He said that members had been registering for the insurance for over 20 years but had not seen its impact.
“The directive is a welcome development if the company handling the policy ensures compensation for victims as intended in the policy,” Babba said.
He called on the government to address the issue of fake insurance policies and suggested that registration should go through the Board of Internal Revenue to ensure authenticity.
Similarly, Alhaji Gambo Mohammed, Secretary of Sauki Transport, expressed support for the policy and urged the authorities to ensure registered vehicle owners receive compensation when involved in accidents.
“We support the government’s decision and are ready to comply, but they should also ensure that our people are compensated when the need arises,” he said.
Mohammed also cautioned law enforcement agencies to ensure enforcement remain strictly within the scope of third party insurance to prevent unnecessary challenges.
SP Suleiman Nguroje, Adamawa Police Command’s spokesman, insisted that third party insurance had covered compensation for accident victims and damages.
Nguroje said that the enforcement of the policy was consistent with Sections 68 of the Insurance Act and 1, 2, and 3 of the Motor Vehicle (Third-Party Insurance) Act.
Meanwhile, the Borno Police Command had begun the enforcement of the mandatory Third Party Insurance Cover for motor vehicles in compliance with the directive of the Inspector General of Police (IGP), Kayode Egbetokun.
The state Commissioner of Police, Mr Yusufu Lawal, assured motorists that the enforcement would be conducted with professionalism.
“We understand the concerns of motorists, as Borno State does not have a functional insurance company. Most insurance services are handled by private organisations.
“So when we stop motorists, we usually direct them to the State Board of Internal Revenue Service, which facilitates the issuance of insurance policies.
“Beyond third-party insurance, this exercise is helping us ensure that motorists have all necessary documents. If a driver does not have insurance, there is a likelihood that he also lacks a valid driver’s license. This enforcement will encourage compliance across multiple levels,” he added.
Our correspondent, who visited various police checkpoints in Maiduguri metropolis, observed that motorists were being stopped in areas such as Dubai Maiduguri, Shagari Low-cost, Gwange Zango, 1,000 Housing Estate, Customs, Dikwa Low-cost, 505 Housing Estate, Lagos Street, and West End.
Although our correspondent in Yobe who visited Gujba, Potiskum, Gashua and Maiduguri Roads in Damaturu did not see any policeman enforcing the Act.
However, Mr Abdulrahman Yusuf, a Road Safety Consultant, called for public awareness campaign to ensure motorists understand the benefits of third party insurance.
“The problem is that many Nigerians see insurance as just another levy. There must be massive sensitisation about its benefits.
“If insurance companies fulfill their obligations by compensating accident victims, public confidence will increase,” Yusuf said.
The Borno Civil Society Forum (BCSF) called for stricter regulations on insurance companies to ensure they compensate victims of accidents.
Speaking on behalf of the forum, Aisha Garba, a policy advocate, urged the government to monitor insurance firms to prevent them from exploiting motorists.
“If the police are enforcing insurance compliance, they must also ensure that insurance companies fulfill their obligations.
“The government should set up a complaint system where victims can report cases of non-payment,” she said.
Dr Ahmed Bukar, a lecturer at Faculty of Law, University of Maiduguri, said policy implementation must be holistic and not just about penalising motorists.
“The goal should not just be about fines and penalties. There should be partnerships between the government, police, and insurance companies to ensure that claims are processed efficiently.
“Without this, the enforcement will be seen as an revenue driven rather than a safety measure,” Bukar said.
