Nigeria’s insurance sector is estimated to be losing about N60 billion annually, as only 25 per cent of registered vehicles in the country carry genuine third party motor insurance policies, The Guardian exclusively reports. This is aside the billions of Naira also lost to the sector on comprehensive motor insurance, which requests that 10 per cent of the cost of a vehicle be paid as yearly premium. Data obtained from the Nigerian Insurers Association (NIA) shows that only four million of the 16 million registered vehicles in the country have third party insurance cover. This leaves a balance of 12 million vehicles either uninsured or parading fake insurance papers. Third Party Insurance is the least cover required by law. It comes at a fixed price of N5,000 for private and N7,500 for commercial vehicles, and covers damages caused by the insured vehicle to other road users including property in the event of an accident. Section 38 of the National Insurance Act 2003, currently in use, states that Third Party Motor Insurance is required as part of the minimum amount of auto cover you must carry as a car owner. Penalties for non-compliance can include a fine of up to N250, 000 and or one-year imprisonment. On the other hand, the comprehensive insurance covers the cost of damages to the insured vehicle as well as to other third party road users and property. There are about 118 insurance and five reinsurance companies registered in Nigeria, which provide covers for the public. Further investigation shows that most of the motorists flaunting insurance papers did not obtain them at the Vehicle licensing offices, a unit of the Vehicle Inspection Offices (VIO), even as there are touts who market the fake insurance covers especially to the commercial vehicles at the parks and garages. The fake insurance covers are sold for between N300 to N1,000, supposedly issued by insurance firms that do not exist. Due to ignorance and lack of knowledge of the benefits of buying original insurance covers, most commercial drivers go for the fake insurance because it is cheap, to avoid the wrath of the law enforcement agents. Keystyle Learning Can Help You Fulfil Your Dream. Work, Study Or Live Abroad: Australia, UK, Canada, USA Or Ghana. Call Us On 09057644711, 09038944464 Or Click Here. For Adverts Placement, Inquiries, News Updates, Contact Us On WhatsApp: 08083609209. Send Articles For Publication To Editor@skytrendnews.com ]]>