Insurance Firms Engage in High Level Fraud - President

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Insurance Firms Engage in High Level Fraud - President

Postby fw12 » Sat Oct 21, 2006 3:20 pm

PRESIDENT Olusegun Obasanjo yesterday accused insurance companies of high-level fraud, involving collection of premium worth billions of naira at the expense of road users.

"The president also described as "unacceptable," current statistics which show, that over 32,000 lives are lost on Nigerian roads yearly.

Obasanjo stated these while declaring open a Stakeholders' forum on Road Safety at the Council Chambers of the Presidential Villa, Abuja.

The forum is part of government's effort to adopt a strategy to check loss of lives on the nation's roads as well as effective improvement of vehicle insurance.

He lamented that over the years the laws of the country on vehicle insurance have been explored by the insurance companies for their selfish advantage without a commensurate take home or compensation paid to their client; insisting that the situation is not acceptable.

He said it was wrong for the insurance outfits to take under advantage of genuine but purposeful insurance policies of the government and portray such laws in bad light before the population, thereby making well intended programmes lose public credibility.

"In identifying vehicle insurance as a handle for improvement of road safety and service to the people, we note with sadness that the real victim is the government of road safety and service to the people, we note with sadness that the real victim is the government's good intention represented by the law that says every vehicle must be properly insured.

"On the other hand, we also note that insurance companies, while profiting from this law, are collecting billions by carrying minimum liabilities to them and therefore does not commit them to deliver the service that will help actualise government intention in promulgating the vehicle insurance law."

Obasanjo's observation came as he released startling statistics of human loss on road accident in Nigeria, which he put at 32,000 annually, as confirmed by the Federal Roads Safety Commission (FRSC).

"This is not acceptable and we must jointly work towards reducing the ugly trend because it is a matter of life and death so everybody must and should be involved".

President declared, calling on operators in the insurance sector be more responsive to the expectations of both the government and those who pay for their services.

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