64% of vehicles on Nigerian roads have fake insurance - NIA

diamond hope

February 19, 2018 11:36 AM

The Nigerian Insurers Association has disclosed that a large number of Nigerian cars have fake car insurance.

According to the chairman of Nigerian Insurers Association (NIA), Eddie Efekoha about only 36% of vehicles plying Nigerian roads are currently insured as records indicates that most of the vehicles run on fake insurance certificates.

He disclosed this saying also that only about 4.5 million vehicles out of 12.5 million plying Nigerian roads are registered on the Nigerian Insurance Industry Database (NIID) which captures all legitimately insured vehicles in Nigeria.

Speaking at an insurance consumer forum organized by the National Insurance Commission (NAICOM) in Lagos, Efekoha said that a situation whereby most insurance companies have offices only in Lagos, Abuja, and Port-Harcourt is a contributing factor to the thriving fake motor policy business.

The NIA chairman stated that fake insurance thrives in states where insurance companies are absent, however, the target of the industry is to register all vehicles that ply Nigerian roads on the platform.

He stated that, "One trend we have seen is that many states have decided to use third-party motor insurance as their internally generated revenue measure as the way of raising money for their government."

According to Efekoha, the NIA is partnering with various state governments to ensure that insurance is done only by registered insurance companies.

diamond hope

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