If a bill being sponsored by Senator Umaru Kurfi, Katisina Central, seeking to amend Motor Vehicles Third Party Insurance Act sails through, then the Third Party Insurance Premium will now cost N20,000 from N5,000.
A bill which is aimed to facilitate the accomplishment of objectives of compulsory Third Party Insurance and related matters has been read the second time and referred to Senate Committee on Banking, Insurance and Other Financial Institutions.
The bill is entitled: SB 276 Motor Vehicles Third Party Insurance Act (Amendment) Bill, 2016; 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.