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VISER: Insurers risk N50 billion revenue loss
By
Bethel Obioma
Insurance Correspondent,
Lagos
Insurance
operators’ failure to accelerate efforts at ensuring the availability of
the mandatory Vehicle Insurance Stickers (VISER) may cost the industry a
whopping N50 billion revenue, an operator has warned.
Guardian
Express Assurance Vice Chairman, Mr. Ochuko Akposibruke, told Daily
Independent that ‘‘the
hiccups that have attended the implementation of the VISER project have
lingered owing to distractions and failure to address the real
issues.’’
The
industry is presently embroiled in a Finance Ministry-led inquisition into the
regulatory body’s alleged non-observance of due process and inflation of
the cost of printing VISER abroad.
Referring
to the non-availability of VISER as an ‘albatross’, Akposibruke
advocated a consideration of the general good of the industry in the VISER
debacle.
He
described the project as the best way of harnessing the actual potential of
motor insurance business, and checking the menace of faking, as he stressed:
“It took the industry over 100 years to realise a premium income of N50
billion. Now we have a situation where if we are able to provide 10 million
VISER stickers before January, we will be looking at nothing less than 50
billion income if our clients buy only Third party covers that cost
N5,000.”
Akposibruke
argued that insurers should be more concerned about partnering the motor
licensing office to build a reliable database for registered vehicles, and
providing enough stickers for about 10 million registered and unregistered cars
in the nation.
He
warned that another postponement of the project’s enforcement due to
non-availability, would further jeopardise its success, compromise the campaign
for adequate protection for accident victims through the enforcement of motor
insurance, and swell fake operators’ coffers.
Already,
the motor business is experiencing a dip as the scarcity of VISER has kept
brokers and prospects away. As the renewal date for policies approach, experts
say motor business may experience further setbacks if a fresh and adequate
consignment of VISER is not injected into the market.
VISER’s
enforcement was postponed to January 2005 after the process was botched twice,
in June and September 2004, respectively.
The
National Insurance Commission (NAICOM) introduced VISER in January 2004 to
serve as a proof of Third party motor insurance cover following decades of
faking of motor insurance certificates and non-compensation of victims of motor
accidents. VISER has distinct security features to make faking difficult and
can only be obtained from NAICOM by duly registered insurance companies for
sums ranging from N100-N250, depending on the nature of the vehicle. With about
2.5 million vehicles reportedly registered in the nation, the commission stands
to get no fewer than N250 million, pledging to plough the proceeds back into
ensuring fool-proof printing of the stickers and awareness campaigns on the
need for compliance by all motorists.
According
to the commission, VISER would ensure accurate and prompt claims payment.
Third party motor insurance is compulsory under the Insurance
Act 2003 that provides that “no person shall use, or cause, or permit any
other person to use a motor vehicle on a road unless a liability, which he may
thereby incur in respect of damage to the property of Third Parties is insured
with an insurer registered under this Act.”
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