Industry loses N240b to eight million uninsured automobiles

The insurance industry has lost a whopping N240 billion premium income from the non-insurance of an estimated eight million tricycles and motorcycles which ply Nigerian roads between 2000 and 2017, The Guardian has learnt.

This figure, according to finding, is only N10 billion less than the total premium income generated by insurance companies in the year 2016, which was put at N250 billion, following a drop in insurance renewals, with only few new covers recorded and the preference for quarterly and monthly premiums as a result of the current economic recession.

The development shows lack of enforcement of insurance laws on the one part, and huge revenue leakages for the sector, which are also taxable to boost government’s non-oil revenue status on the.

Further investigation showed that the industry now loses about N40 billion on a yearly basis to uninsured tricycles and motorcycles, as virtually all of them have no third party motor insurance cover, which is N5,000 under the Third Party Motor Insurance Act.

The Guardian, July 17, 2018

 

 

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