Nigeria’s economy has been growing steadily over the past few years, according to the World Bank, Nigeria’s economy will have an average steady growth of 2.9% per year between 2023 and 2025. This growth will largely be driven by services, trade and manufacturing hence luring investments into a variety of industries. Increased exposure to risks, both natural and man-made, comes along with economic expansion. Reinsurance is crucial to the Nigerian insurance sector’s efforts to reduce these risks and foster financial stability. In this article, we examine the idea of reinsurance, its importance, and its effects on the Nigerian market.
Terms like insurance and indemnity describe the defense against monetary losses that may result from unanticipated circumstances. In exchange for a premium payment, an insurance company agrees to provide financial protection against certain risks under the terms of an agreement with a person or organization.
A third party’s property or other damages resulting from an accident that the policyholder caused are covered by this kind of insurance policy, and the insurer agrees to pay for those losses. This might cover reimbursement for related costs such as medical bills and car repairs.
It’s crucial to keep in mind, though, that third party insurance does not protect the policyholder’s own car or any injuries they might sustain in an accident. Due to this, it is advised that policyholders think about getting a comprehensive insurance plan that covers third-party liability as well as damage to their own vehicle and bodily injury.
The National Insurance Commission (NAICOM) the insurance regulatory body in Nigeria has issued a circular on the 22nd of December 2022 for the new rates for vehicle Insurance in the country.
The motor Third Party insurance which is the basic policy every vehicle owner should have according to the NAICOM Act 1997 will no longer be N5,000 for private vehicles but N15,000 effective from 1st January 2023 according to the directive by the NAICOM. Also, the rates for all the commercial vehicle insurance policies have also increased by average of 200%. Typical commercial motors and staff buses will have to pay N20,000 for new Third Party insurance rates or premium. New premium rates for Trucks and Tricycles are N100,000 and N5,000 respectively.
Aside the new rates that have been applied to the Motor Third Party Insurance, the Third Party Property Damage Liability (TPPD) have also being increased. Due to constant increase in inflation rate and cost of living in Nigeria, its expedient to ensure TPPD indeed cover liabilities in line with the current realities. New TPPD for Private Motor Vehicle Insurance is now N3m and for commercial vehicles ranges between N3m to N5m depending on the type.
Most vehicle owners in Nigeria see motor Third Party Insurance as a ritual to evade the harassments of traffic Enforcement Agencies. However, with proper education of the populace on getting authentic Motor Insurance from good insurance companies, there will be no issues of road blockage, argument and fighting when there are collision of vehicles as 3rd party insurance polices will be able to provide enough cover for the people.
The directive from NAICOM also pegs the new rate for Comprehensive Insurance at 5% of the sum insured after all rebate and discount. Meanwhile servpay.ng offers affordable and reliable Motor Third Party Insurance for both private and commercial vehicles in 5mins from one of the flagship insurance company in Nigeria. Click here to get started.
Lagos State Ministry of Transportation Vehicle inspection Services (VIS) commenced implementation of vehicles testing January 2022 prior to issuance of Road Worthiness Certificate to motorist in the State.
Before now, these Certificates are issued without any test carried out on vehicles. In most cases, the Vehicle inspection organization do not sight the particular vehicle before issuing the certificate. This has allowed vehicle which poses safety treat to the environment and other motorist to continue to ply the roads of Lagos State.
This new initiative with the Lagos Computerized Vehicle Inspection Service (LACVIS) has been the one of the first in Nigeria as most States are yet to embrace this model.
Vehicle Inspection Service (VIS) Centres in Lagos State
1. Head Office– No. 16 Muyibat Oyefusi Street Omole.
2. Ayobo Centre– VIS Office Fashola Street Church Bus Stop Ipaja.
Step 1- Visit any of the VIS Centre to process renewal of the Worthiness Certificate
Step 2- Upon payment, referral note will be issued containing Inspection Centre and Time of Inspection.
Step 3- Present Vehicle at dedicated LACVIS Centre for testing at no cost.
Step 4- Once the Vehicle passed the Inspection, the Road Worthiness Certificate will be issued immediately.
Step 5- If the Vehicle fails the test, vehicle owner will fix all faults identified on the report from LACVIS and present vehicle at the Centre for re-test.
What Vehicle Owners Should Check before going for Vehicle Testing at the VIS Centre in Lagos State
1. Vehicle Lights– The Inspectors will check the functionality of every light in your vehicle before it can pass. Break lights, Head lamps, trafficators, hazard light etc. These lights are very import to Vehicle as it can prevent road accident. Ensure qualified mechanic inspect your vehicle lights before going for inspection.
2. Brake System– Break structure in any vehicle is a critical component which could lead to risk of lives when not in proper in good shape. Inspector will take critical check of all the components of the car brake system with the assistance of computerized system and visual inspection; these include Brake system, Brake pads, pump, fluid holes and leakages on Brake fluid lines. Ensure the Brake fluid holes are properly fixed under the vehicle else; vehicle will fail the test.
3. Shock Absorber– These devices are responsible for absorbing jolts and vibrations on vehicle. The computer system will check for the integrity of the absorber and provide necessary recommendation.
4. Vehicle Tires– Your tires have to be up to date. The computer system will detect warping and expired tires.
5. Engine Oil Leakages– Ensure all oil leakages are rectified before going for road worthiness inspection. Change all necessary seals and clean off any leaked lubricant.
6. Tire Alignment and Balancing– It is important wheel alignment and balancing is properly done before vising the VIS center for inspection. The computer system will detect any faults beyond the allowable and fail any erring vehicle.
7. Renew Motor Insurance and Vehicle License and Ticket Bills– Every vehicle on the road must have at least a Third-Party insurance and renewed Vehicle license payment. To enjoy discounted motor insurance, www.servpay.ng offers affordable and authentic Third party motor insurance both for private and commercial vehicles in line with the regulations. Click here to get started.
Lagos State Ministry of Transportation Vehicle inspection Services (VIS) has installed cameras along the street of Lagos to identify traffic offenders and fines appropriately. These fines are often attached to offender’s vehicle and these bills must be settled before the Lagos State Government issue a Road Worthiness certificate.
Since the implementation of the Vehicle testing, the rate of broken-down vehicles has decreased tremendously on the Lagos State roads. To properly cater for over 5 million cars and 200,000 commercial vehicles in Lagos, the State Government must make provision for more testing centers and should partner with private investors to encourage car owners go for regularly and routine inspection which should be done at least 3 times in an Year and rather not wait for a mandatory testing once in a year. The commercial vehicles are mandated to go for vehicle testing twice in a year.
Society has described the word Insurance in various ways. Although, its widely mentioned in every sector of the economy which is not limited to Financial Sector.
The word Insurance means Assurance, Support, Cover, Protection or Defence.
The word Insurance cannot be mentioned if there are no traces or potential of Risk, Loss or Danger.
Every Sector in the economy has risk exposure for example, in the Manufacturing Industry, there are possibilities of fire accidents, damage to building structures, loss of lives, damage of equipment and key infrastructure. This is one of the checklist in Risk Management.
When such losses occur, everyone in the community is affected, this has forced the Government to establish Institution and support Insurance Policies.
The following are few among different types of Insurance available:
Vehicle Insurance
Life Insurance
Mortgage Insurance
Fire Insurance
Marine Insurance
Travel Insurance
Goods in Transit Insurance
Building Insurance
Education Insurance
These Insurance Models will be discussed in our subsequent post. However, to purchase 3rd Party Vehicle Insurance in 2mins kindly click on www.servpay.ng. Policy Certificate will be sent to the email address provided and same Vehicle Information will automatically be logged on Nigerian Insurance Industry Database (NIID). Both Private and Commercial Third Party Vehicle Insurance are available on the platform.