Senate Probes 12 Fake Insurance Firms

The Senate has di
rected its committee on Banking, Insurance  and other Financial Institutions to immediately organize  a public hearing to investigate  the result of  a survey  that revealed that over 12 million  vehicle  insurance  policies  in the country were fake.
The committee is expected to invite  stakeholders in the insurance sector to deliberate on ways of ensuring  the strict implementation of the six compulsory insurance schemes as provided in the Insurance Act  and invoke sanctions where necessary.
The committee is to submit  its report within two weeks. Senate took the decision following a motion by Senator representing Kogi Central  Senatorial District, Ahmed Ogembe.
The bill is seeking the implementation of the compulsory insurance in Nigeria as provided for in  the Insurance Act and Regulation, 2003.
Ogembe told his colleagues  that the result of a recent  research in his possession indicated that out of the 16 million vehicles in the country only four million were properly insured, adding that sections 3(a)(b) and 4(1-4) of the Insurance Act 2003 expressly stated  the conditions for the registration of an insurance  company in Nigeria.
He noted that there were 58 insurance companies registered with the National Insurance Commission  (NAICOM), yet, there were uncountable number of unregistered  institutions selling  worthless insurance certificates to unsuspecting members of the public