Insurance firms lament monopoly of motor insurance in Ogun

Insurance companies and motorists in Ogun State are lamenting the monopoly of the third party motor insurance policy being issued to motorists in the state by the state government, which they said contravenes the National Insurance Commission (NAICOM) policy.

The umbrella body of the companies alleged that the state government is giving priority to only two insurance companies in the issuance of the third party insurance paper to the motorists before they could be given vehicle license.

The South-West Regional Manager of Anchor Insurance Company, Mr. Philips Olowoporoku made this known at the protest rally made by their members and motorists at the Ogun State Internal Revenue Service (OGIRS) office in Abeokuta, Ogun State at the weekend.

Olowoporoku stated that Ogun State Internal Revenue Service had barred other insurance companies in the state from their fundamental right by issuing third party insurance to the motorists, adding that they refused to accept the likes of Anchor, Mutual Benefit, Standard, Equity, Niger and other insurance company’s papers except that of Great Nigeria Insurance (gni) and Lasaco Insurance.

He added that it was difficult for the holders of their insurance papers to get vehicle license from Ogun State Internal Revenue Service, noting that they now move to neighbouring states to collect vehicle license for their clients/customers.

Olowoporoku said the NAICOM’s attention has been drawn to practice of some insurance companies who form consortium to collaborate with Ministries, Departments and Agencies of Federal, State, and Local governments, but warned them to desist from the act or else would be sanctioned.

He said it is illegal, criminal and punishable offence under the NAICOM Act 2003 and other extant laws of the Federal Republic of Nigeria for any brokers, agents to form consortium in order to monopolise the insurance brokers for their selfish interest.

“Here, we do pay our taxes which includes individual, tenement, signage and other taxes. I don’t see any reason why the state government will now deprive us from performing our constitutional and official duties through the issuance of our insurance policy to the expectant clients”, Olowoporoku stated.

He urged the state governor, Senator Ibikunle Amosun to quickly come to their rescue and intervene in the matter, saying this deprivation had been affecting their companies and the state as well.

Olowoporoku said that they are now patronising neighbouring states, like Oyo, Lagos, Osun and others for vehicle license for their clients/customers which negatively affecting the Internally Generated Revenue (IGR) of Ogun State.