Reps Investigate Value Of Third Party Insurance
Many Nigerian car owners use Third Party Motor Vehicle Insurance and the House of Representatives want to know if the insured is deriving benefits from the scheme.
It believes people just get the papers without getting the commensurate benefit.
To get a better understand of how much Nigerians benefit, the House of Representatives On Thursday mandated its Committee on Insurance and Actuarial Matters to investigate the operations of the Third Party Motor Vehicle Insurance Scheme.
The investigation will also determining the constraints in the operations of the scheme.
Lawmakers made the decision after they unanimously adopted a motion by Francis Uduyok at the plenary on Thursday.
Moving the motion earlier, Uduyok said: "Section 68 (1) of the Insurance Act of 2003 provides that no person shall use or cause 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 a third party is insured with an Insurer registered under this Act".
He said a third party insurance policy of 5,000 Naira was usually purchased under the Act by the insured for protection against another party’s claims that is known as the third party.
The legislator said that motorists were systematically being denied information on the essence of the 5,000 Naira insurance premium paid at the point of registering a vehicle or renewal of the vehicle particulars.
Uduyok said that most owners of such vehicles, which were covered by insurance and ought to have been compensated, did not receive any compensation.
He said the policy holder usually ended up bearing the costs of the repairs because majority of vehicle owners were ignorant of what was involved.
As a result of the ignorance, some insurance companies were raking in fortunes without paying compensation to the insured, he said.
The House urged the Federal Ministry of Information and Culture to initiate enlightenment campaigns on the rights of the insured under the Third Party Motor Vehicle Insurance Scheme.
The green chamber also asked the Federal Road Safety Commission and the National Insurance Agency (NIA) to commence mass enlightenment.
It then mandated its committee to investigate and report back its findings within 12 weeks for further legislative action.