Even with most Nigerian motorists evading genuine Third Party insurance for their vehicles at N5,000, the Senate is at the verge of increasing the premium to N20,000 as the bill for the increase has passed second reading.

The bill sponsored by Senator Umaru Kurfi – Katsina Central, and entitled: SB 276 Motor Vehicles Third Party Insurance Act (Amendment) Bill, 2016, has been referred to the Senate Committee on Banking, Insurance and Other Financial Institutions.

The bill seeks to amend the Act to ensure the accomplishment of objectives of the compulsory third party insurance cover. According to Senator Kurfi, increasing the premium from N5,000 to N20,000, shall ensure effective settlement of claims.

He also proposed the setting up of a fund by taxing motor underwriters, stressing that the fund should be used to settle victims of accident who could not obtain compensation or where an insurance company becomes insolvent or goes into liquidation before judgment was obtained by the victim.

Information obtained from the website of the National Assembly on the bill reads: “Motor Vehicles Third Party Insurance 2004 (Amendment) Bill, 2017 (SB.276);, Motion Made;, That a Bill for an Act to Amend the Motor Vehicles Third Party Insurance 2004 to facilitate the accomplishment of objectives of compulsory Third Party Insurance and for Related Matters, 2017 be read the Second Time (Senator Umaru l. Kurfi – Katsina Central);, Debate;, Question put and agreed to;, Bill accordingly read the Second Time and referred to the Committee on Banking, Insurance and Other Financial Institutions to report within Four (4) weeks; senate (Votes and Proceedings) Jan 2017.”
https://newtelegraphonline.com/business/motorists-pay-n20000-premium-third-party/

Gbese re o.....I just hope this bunch of old timers in the senate know what they are up....5k sef pple no gree pay

Na to do premium sure pass

I laughed when I heard that the purpose of the proposed increase was to ensure prompt payment.
Even for some insurance companies to pay genuine premium claim na thug-of-war. No to even mention third party sef.

As for the special fund to help accident victims, if you tax the underwriters the burden will still fall on the final consumer. Besides those in charge of the fund will do the needful as usual, no be today we sabi una parole. How many special funds have we had since the history of the country? NITEL and NEPA comes to mind.

These guys are really out of touch with plight and cause of the masses discomfort.

Any increase in anything what so ever the people bears the cost.

Yet someone will say "ask not what your country can for you but what you can do for your country."

Until we physically donate our last blood and breath these guy will never believe we have sacrificed enough.

This must be a joke. Otherwise, it is DOA! Dead on Arrival!

Very funny piece of news

where are we going