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Insurers rake premium from FG N2bn buses

Patience Saghana
Barring any act of under pricing and unwholesome discounts, insurance companies are to rake over N2million income from the N2billion the Federal Government spent on the 138 buses it distributed to 69 tertiary institutions across the nation.

Daniel

Though insurance companies packaging the covers are yet known to Vanguard as at the time but Vanguard findings revealed that comprehensive insurance is 10 percent of the total value of  each of the buses and if N2billion was spent on buying the buses, insurance companies are to generate N2million premium income from it except that the  insurance covers are not procured from genuine insurance companies.

Professor Olagoke Afolabi, Permanent Secretary, Federal Ministry of Education, said the provision of the buses was made a reality through a special presidential initiative to reduce the suffering of the students and staff of the nation’s federal tertiary institutions.

The vehicles are provided with comprehensive insurance cover and motor tracking device. According to the Permanent Secretary, consideration was given to local assembly, popularity, strong after-sales back-up, good track record of performance in Nigeria environment, ease of maintenance and availability in selecting the vehicles
Federal Government recently bought 138 buses worth  N2 billion to ease the tension on mass transportation in the country’s federal tertiary educational institutions.

This comprises 91 Toyota 30-seater coaster buses, 27 Mercedes MBO 1721 buscars and 20 Nissan Civilian 30-seater buses branded as ‘Federal Government Mass Transit Support’. The buses, which are provided with comprehensive insurance cover and motor tracking device, would be distributed among the 69 federal tertiary institutions.

Each federal university is entitled to one Mercedes MBO 1721 buscar and one 30-seater bus while two 30-seater buses would be allocated to each Federal College of Education and federal polytechnics

According to him, “In the last three decades, the federal tertiary institutions have been plagued by a pool of unserviceable vehicles amidst the competing demands for funds. The demand for fund in the critical areas of provision of adequate physical infrastructure for these institutions has resulted in a near total neglect of mass transportation arrangements
This hardship and the resultant loss of comfort and dignity for this social class has prompted Federal Government to decide to provide a palliative through the provision of buses for use on campuses.”

Afolabi stressed the need for all stakeholders, including the Federal Government, private sector organisations, development partners and other public-spirited individuals to collaborate and improve the funding of tertiary education in the country, explaining that this is necessary because this sub-sector is capital intensive.

Dr. Jamila Shu’ara, Director, Tertiary Education of the Federal Ministry of Education, said the special intervention of providing mass transit to tertiary institutions is timely, adding that the initiative speaks volume of the determination of the Federal Government to cater for the needs of its tertiary institutions.

Prof. Ignatius Uvah of the National Universities Commission said the intervention will go a long way in quality service delivery in the institutions.


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