Only 1.2m of 11.8m vehicles have third-party insurance
Although Nigeria has about 11.8 million registered vehicles plying the roads, only about 1.2 million of such vehicles have valid insurance.
The implications are that the nation’s insurance industry may be losing about N530 billion due to the unwillingness of motorists to register their vehicles, statistics available to The Guardian have shown.
The development, according to stakeholders is worsened by the inability of insurance companies to honour claims on the third party insurance that is predominant in the country.
Some insurance shareholders, however, argued that unless the companies obey the rules guiding the industry, vehicle owners might continue to shun motor insurance policies.
According to them, ‘’it is actually pathetic that Nigeria continues to lose money that would have actually impacted on the economy in several ways, especially in job creation, as vehicle owners presently prefer not to take insurance policies but