A motor vehicles third party insurance Act, which will enable the government to set up a fund to compensate uninsured victims of road accidents is underway, investigation has revealed.
This was contained in a bill to amend the motor vehicles third party insurance 2004 to facilitate the accomplishment of objectives of compulsory third party insurance and for related matters 2016, sponsored by Senator Umaru Kurfi
According to the bill, the fund would be set up by levying motor underwriters.
Should the bill be passed, the fund would also be used to settle victims of accident who could not obtain insurance compensation from their distressed insurance companies, especially “where an insurance company becomes insolvent or goes into liquidation before judgment is obtained; where the accident is caused by an uninsured driver/vehicle; the accident caused by a ‘hit and run’ driver who cannot be traced; and where there is anticipated delay in the judicial process which often discourages victims of accidents from seeking compensation.”
The bill also recommended that the third party insurance premium should be increased from N5,000 to N20,000 to ensure effective settlement of claims.
It added that all government vehicles should be insured against third party risks.