By Olivia Nnorom
Nigerian Insurers Association (NIA) has said that Nigerian motorists who have paid the recently adjusted premiums for third party motor insurance will enjoy the benefit of ECOWAS Brown Card in the event of an accident when travelling within the West African sub-region.
With the new tariff on third party motor insurance effective January 1, 2023, NAICOM is driving to see that motorists have adequate cover to protect citizens and assets that become victims of accidents on Nigerian roads and across the ECOWAS Region.
This is in line with the brown card scheme, which means that a registered Nigerian vehicle with third-party motor insurance is covered when in and around any of the West African countries, and motorists from other West African countries into Nigeria are also covered.
The Brown Card provides motorists complete guarantee for a prompt, fair and immediate compensation for any accident they may cause outside their habitual residence country, within west Africa.
The cardholder is treated exactly as if the basic insurance policy was underwritten with a company located in the country visited or through which it transits.
Since the government authorities recognise the Brown Card, the motorist is exempted from any other formality relating to the guarantee against the risks of civil liability.
Segun Omosehin, chairman of NIA said the new premium is in line with ECOWAS protocol, stressing that sub-regional institutions are working to liberalise trade.
“The third-party motor insurance is in tandem with the ECOWAS protocol, as West Africa has become a common market,” he said.
According to Omosehin, NIA is in full support of the new premium rates released by the National Insurance Commission (NAICOM) and has indeed taken steps to ensure that members comply and join in the publicity initiatives that will follow shortly.
Speaking on the publicity initiatives, Omosehin said the association is embarking on stakeholder engagement as a first layer interface with the critical stakeholders to ensure their buy-in and support.
He expressed confidence that Nigerians will support the new rates and this will lead to increase in premium income for underwriters, and increase in claims payment to the clients.
NIA advised motorists to verify the genuineness of motor insurance, by running their policy documents in the Nigerian Insurance Industry Database (NIID).
