Insurance firms await bill to sanction reckless drivers in Nigeria

• Proposes fine for fake policies, owners of uninsured vehicles

In its quest to stem the tide of false motor insurance policies and uninsured vehicles, the Nigerian insurance companies have hinted that they are awaiting a new law sanctioning reckless drivers.

The text from the insurance firms proposed to the National Assembly provides for a fine of 5 million NGN (13 060 USD) for the holders of fake motor insurance policies, while the owners of uninsured vehicles shall also to be penalized.

The Nigerian Insurers Association (NIA), disclosed that the insurance industry sustains an annual loss of about 48 billion NGN (125.36 million USD) due to false motor insurance policies and uninsured vehicles.

The NIA also estimates that 9.64 million out of 12 million registered vehicles either hold fake insurance policies or are completely uninsured.