- Monday, May 6, 2024
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The Federal Capital Territory
(FCT) Directorate of Road Transport Services (DRTS) has expressed worries over
Abuja residents not getting value for the premiums on their third-party motor
insurance.
Director, DRTS Dr. Bello
Abdul-Lateef, spoke when the Commissioner for Insurance and Chief Executive
Officer of the National Insurance Commission (NAICOM) Mr. Olorundare Sunday
Thomas paid him an official visit in Abuja.
The DRTS boss lamented that many
residents, "were paying as much as N15,000 for coverage, yet potentially
receiving only N4,000 worth of protection".
This discrepancy he said is often
due to a lack of validation on the part of residents and the possible use of
unauthorized agents to process insurance requests.
"A lot of individuals
renewing their vehicle particulars were not getting value for the insurance
premium being paid as they did not validate the insurance policies after
purchase even though they might have paid N15,000; whereas the cover they were
actually given cost N4,000 considering the fact that they may have engaged
unauthorised persons to help process their request," he said.
The DRTS also announced a new
initiative to combat such fraud and improve the overall insurance experience
for Abuja residents. This initiative is
a collaborative effort between the DRTS and the NAICOM.
As part of this effort, the DRTS
has launched a new online system for renewing vehicle particulars. This new
system allows Abuja residents to conveniently renew their vehicle registrations
from the comfort of their homes.
Dr. Abdul-Lateef said DRTS is
committed to transparency and fair pricing.
He said 98 per cent of their processes are now automated, a step
specifically designed to prevent these irregularities. The new online renewal system is a prime
example of this automation focus.
Responding, Mr. Thomas noted the
importance of collaboration between NAICOM and the DRTS.
The collaboration between NAICOM
and DRTS aims to strengthen existing insurance management systems and
significantly reduce instances of fraud related to third-party motor insurance.
Mr. Thomas also reminded
residents about the recent increase in mandated third-party motor insurance
coverage, which came into effect in January 2023. Minimum coverage he
reiterated "has risen from N1 million to N3 million, providing improved
protection for road users in the event of an accident".
The collaborative efforts of the
DRTS and NAICOM represent a significant step towards a more efficient, secure,
and transparent system for vehicle registration and insurance in Abuja.
Residents can now not only renew
their registrations online but also rest assured they are receiving proper
insurance coverage at a fair price. This
initiative promises to benefit both residents and the insurance industry as a
whole.
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