By ROSEMARY ONUOHA

There is palpable fear in the insurance sector based on the news going round that the industry might lose motor insurance policy to the Federal Road Safety Commission (FRSC) as a result of government directive that all drivers’ licences and plate numbers be automated.

While some quarters say the news is mere rumour, others say it is a reality, but the fact remains that there is fear in the atmosphere.

The fear started when the FRSC introduced a new regime of driver’s licence and motor vehicle number plate to be used across the country. The scheme was recently launched in Abuja by President Goodluck Jonathan who paid tribute to FRSC and commended the initiative of its leadership for the introduction of the scheme.

According to FRSC Corps Marshal and Chief Executive, Osita Chidoka, the objectives of the new scheme include the standardisation and enhancement of driver’s licence, upgrade of Information Processing Centre, to reduce processing time, clean up of driver’s licence data base, establishment of a one-stop-shop for the processing of application, and physical capture of applicant’s data and central print farm for the production of the document.

However, the objective of a one-stop-shop for the processing of application is not going down well with some operators in the insurance sector. According to them, such move is capable of causing the FRSC to hijack motor policy because all licensing processes will begin and end at the licensing office, unlike before where one has to present an insurance motor certificate before the process can be concluded.

Another reason being put forward by these operators is that hackers could gain access into the data base of the FRSC which could lead to proliferation of fake certificates to the detriment of the insurance sector. And since Nigerians like being on the fast lane, they will rather patronise the hackers than go through the rigours of the FRSC certification.

Although the FRSC said it is embarking on the new driver’s licence and vehicle number plate to conform to international standards and help the nation build a history of all categories of people driving vehicles in the country, these insurance practitioners are skeptical about the development.

According to them, the insurance industry lost pension to the pension industry, Health Insurance Scheme to National Health Insurance Scheme (NHIS), and Workmen’s Compensation to Nigeria Social Insurance Trust Fund (NSITF) despite all assurances that they had nothing to fear then.

A case in point

In the case of Workmen’s Compensation, after a long drawn battle between the insurance industry and the Nigeria Social Insurance Trust Fund (NSITF), the Employees’ Compensation Act (ECA) eventually replaced the Workmen’s Compensation Act (WCA).

After President Goodluck Jonathan signed the Employees Compensation Bill into law, the control of Workmen’s Compensation was sadly taken from insurers and handed over to NSITF.

Mr. Yemi Soladoye, an industry expert and a consultant for the National Insurance Commission (NAICOM) said the insurance industry lost the control of workers compensation because there is no unity of purpose amongst insurance operators.

In his words “Everybody in the insurance industry is looking at the small picture, consequently, in 1999 we lost health insurance, in 2004 we lost pension, so in 2010 we ended up losing workmen’s compensation again meaning that we have lost the third class of insurance within ten years.”

Operators’ reactions

Mr. Wale Oshodi, an insurance expert argued that the news that motor insurance might be taken from the insurance industry should not be seen or taken as mere rumour because the other policies that the sector lost were all taken as rumours.

In his words “We are hearing that motor policy is going and we are not doing anything about it. It is very dangerous for the industry to fold its hands and take the news as speculation. We should sit up and do something.”

Oshodi stressed that it is not enough for practitioners to sit back and say that it is mere speculation without doing anything because that was how the industry lost the Pension Scheme to the pension industry, Health Insurance Scheme to NHIS and Workmen’s Compensation to NSITF. He therefore called on operators to demand a review of the new licensing and plate number scheme.

Reacting to the call for the scheme to be reviewed, Chairman of Nigeria Insurance Association (NIA), Mr. Olusola Ladipo-Ajayi noted that the automation of motor certificates in the country has come to stay and there is no going back on the scheme.

Ajayi however assured that the scheme is not for the FRSC to hijack motor insurance from the insurance industry but is a collaborative process between the NIA and the FRSC to wipe out fake insurers in the country.

The NIA president who reiterated that the motor insurance business will not slip away from them, explained thus “In the process of trying to do new licensing, the FRSC will contact NIA data base which will be linked to FRSC data base and consequently determine whether the client at hand is dealing with a government recognised insurance company or not.”

Mr. Olumide Fatogun, Managing Director of Boof Africa Insurance Brokers Limited said that insurers have a duty to ensure that they don’t lose motor insurance business to the FRSC because it will ultimately portray practitioners in the sector as unserious people.

Soladoye on his part said that there should be unity of purpose amongst insurance practitioners so that they can always present a common front to the government whenever there are challenging issues that could impact on their operations such as this.