The Nigerian Insurance Association (NIA) on Tuesday called for effective implementation of sanctions on vehicles plying highways without valid insurance cover.
The Chairman of NIA, Mr Tope Smart, told newsmen in Lagos that the implementation would reduce economic loss, violators and enhance insurance mitigation for mishaps.
Smart said vehicles without valid insurance cover violated Section 38 of National Insurance Act of 2003, which clearly states that “Third Party Motor Insurance is required as part of minimum auto cover any car must carry.
“Penalty for non-compliance can include a fine of N250,000 and, or one year imprisonment,’’ he said.
Smart, however, commended the Federal Road Safety Corps (FRSC) for making sure that motorists were complying in accordance with the statutory regulations as regards issurance cover.
“How can insurance also play its role of mitigation without valid insurance cover,’’ he asked.
Smart said that the Nigerian Bureau of Statistics (NBS) report released in August estimated a total of 11.7 million vehicles in the country as at June.
“NIA investigation revealed that about five million of these vehicles were insured, leaving 6.7 million vehicles uninsured,’’ he said.
Smart also expressed regret that many vehicle owners did not learn from a recent mishap in Lagos State.
“The ill-fated fuel tanker that caused explosion on Otedola Bridge recently had no valid insurance paper.
“When the registration number of the tanker NSR888YC was entered on Nigerian Insurance Industry Database (NIID) platform, the type of insurance and other useful information did not display unlike other vehicles with valid insurance papers,’’ he said.