Sylvester Idowu in Warri
The Delta State Chapter of the Association of Insurance Managers/CEOs and Insurance Brokers have warned the motor licencing officials at the Delta State Board of Internal Revenue (DBIR) to desist from unethical practices that are against the third party motor Insurance Acts of 1945 as Amended in Insurance Acts of 2003.
The association maintained that motor licencing offices have no business with the issuance of third party motor insurance policy.
The Chairman of the group, Mr. Ben Usiora, gave the warning at a press conference in Warri.
Usiora, who was flanked by his Secretary, Sangobiyi Seun, insisted that third party motor licencing insurance can only be done by insurance companies registered by the National Insurance Commission, (NAICOM) under the insurance Act of 2003 as Amended.
“It has been the challenge in Delta State for some months now, the State Board of Internal Revenue engaged the services of Richfield Technologies Limited to handle vehicle license renewal as well as third party Insurance renewal which is against the spirit of Insurance Act 2003.
“We want to state that Insurance business are risk transfer mechanism from the insured (i.e the customer) to the insurer (insurance companies) and when the insured incident occurs in this wise motor accident, insurance companies are liable to pay compensation,” he added.
Usiora, noted that the third party motor insurance was one of the compulsory insurance in Nigeria backed by law that’s, “third party motor insurance Acts 1945 as Amended in Insurance Acts of 2003.”
According to Usiora,”It covers third party damage or injury caused by the insured to the third party. This may be a vehicle or properties. Under the above quoted insurance Acts of 1945 as Amended in Insurance Acts of 2003.
“A fake carrier of motor third party insurance certificate is liable for a fine of N250,000 or two years’ imprisonment or both,” he said.