The Council of Chartered Insurance Institute of Nigeria (CIIN) has commended the House of Representatives for passing the Insurance Reform Bill, expressing that the insurance act of 2004 was an old law that definitely due for review in terms of the kind of transformation that is currently needed.
The House of Representatives, on Wednesday, passed the Nigerian Insurance Industry Reform Act Bill, 2024.
The bill aims to provide a comprehensive legal framework for the regulation and supervision of all types of insurance businesses in Nigeria.
The passed bill, if signed by the President, will repeal the Motor Vehicle (Third Party) Insurance Act, Cap M22, Laws of the Federation of Nigeria, 2004.
It also repealed the National Insurance Corporation of Nigeria Act, Laws of the Federation of Nigeria, 2004 and the Nigerian Insurance Reinsurance Corporation Act, Cap N131, Laws of the Federation of Nigeria.
Mrs Yetunde Ilori, President of CIIN, described the development as a significant milestone in efforts to reform the insurance industry in Nigeria.
Ilori said with the proposed legislation, the industry was expected to become more competitive and contribute positively to the country’s economic growth.
She said that the insurance industry was eagerly awaiting the President’s final assent to the bill.
She commended the National Insurance Commission (NAICOM) and the legislative arm for their outstanding efforts in facilitating the passage of the bill.
“I congratulate the entire insurance industry; I thank the legislative arm; the Senate and the House of Representatives for getting to this stage,” she said.
Ilori attributed the current development to the tireless efforts of key stakeholders in the industry.
“Whatever we have now is as a result of collective effort of the various arms within the industry, especially NAICOM, which played a vital role in this.
Speaking on the Third party motor insurance policy introduced by the Federal Government, Ilori advised Nigerians to embrace the policy .
She said that Nigerians could opt for the comprehensive insurance cover, which provides broader protection, including coverage for damage to their own vehicles.
Ilori explained that the Third-party motor insurance cover only damage to the other person’s vehicle and property in an accident.
She said the comprehensive insurance covers both vehicles, third-party damages, including theft, fire, and other events.
The CIITN President noted that the Third-party motor insurance fee was the least compared to other West African countries.
She commended the Inspector General of Police (IGP), for deploying his team to ensure the enforcement of the policy as well as public sensitisation on it.
Ilori urged the media to upscale sensitisation on the policy.