Sir: Motor Insurance is, by far, not only the most popular class of insurance but also the dominant source of premium for most insurance companies in Nigeria, according to research by Finterate Projects, a business fitness consultancy led by my humble self.
While working on the available information and data to determine Nigeria’s 10 Leading Motor Insurers for 2022, it became even more obvious that most licensed General Business Insurance Companies generate, on average, 30 per cent of their Gross Written Premium from Motor Insurance.
You will remember that late December last year, the regulator, National Insurance Commission (NAICOM), announced increase in premium rates for Third Party Motor Insurance regarding private and commercial vehicles while Comprehensive Motor Insurance was pegged at five per cent of the value of the vehicle. So, it is expected that the premium generated from Motor Insurance will continue to dominate the books of many insurance companies in Nigeria.
Claims Payments remain the crux of the matter in insurance relationships, and most insurers pay out approximately 50 per cent of the GWP as claims in a year, as we have seen for 2022.
All Composite and General (Non-Life) Business insurers are licensed to transact Motor Insurance. With the number of registered vehicles reported by National Bureau of Statistics (NBS) in 2018 to be 11.8 million and about three million registered on NIID platform of the Nigerian Insurers Association (NIA) in 2021, these insurers still have a lot of work to do bringing more registered vehicles on to the platform.
By implication, most vehicles on Nigerian roads are not enjoying genuine insurance coverage, and in the event of accidents, such vehicles and their occupants cannot be compensated by any of these licensed insurers.
With the benefits of Third Party Motor Insurance outlined in my previous write ups and restated here below for the knowledge of new subscribers, we can make insurance work for us in Nigeria. The benefits include:
• Third Party Property Damage Limit of N3 million. This is available to enable you fix the damaged vehicle or property of the Third Party;
• Death benefits in case any lives were lost in the vehicle or property of the Third Party;
• Unlimited sum for medical expenses to cater for bodily injuries to anyone or more persons in the vehicle or property of the Third Party; and
• Access to ECOWAS Brown Card to enable you drive across West Africa.
Please get your genuine Third Party Motor Insurance today from any Composite or General Business Insurers and enjoy from the increasing volume of claims paid by these insurers every day of every week of every month yearly.
This class of insurance – Motor Insurance – is working for many individuals and organisations in Nigeria, why not you and yours?
Gam-Ikon, an insurance expert, wrote from Lagos.
