NIA switches to USSD code to enhance compliance monitoring on motor insurance
To ensure that vehicle inspection is enhanced on the Nigerian Insurance Industry Data Base (NIID) platform created to authenticate the genuine insurance certificates presented by motorists, the Nigerian Insurers Association has switched to Unstructured Supplementary Service Data (USSD) Code.
Unstructured Supplementary Service Data (USSD), sometimes referred to as “Quick Codes” or “Feature codes”, is a protocol used by GSM cellular telephones to communicate with the service provider’s computers.
Speaking on the development, the chairman of NIA, Eddie Efekoha, said the changes was as a result of challenges identified in the current system for checking the authenticity of motor insurance certificates.
According to him verification is hampered during downtimes, adding that the new code will help to strengthen the Nigeria Insurance Industry Database (NIID) to stop fraudulent claims by policy holders.
On the features of the USSD code, he said the Code can be used in remote towns and villages across Nigeria where connectivity is a challenge.
“As a responsive organization, we are mindful of changes in the business environment. To this end, we have identified the challenges in the current system for checking the authenticity of motor insurance certificates. Verification is hampered during downtimes.”
Eddie who is also MD/ CEO Consolidated Hallmark Insurance Plc frowned at the low number of vehicles on the platform, adding that as at November 2016 only about 5million motor certificate have been uploaded into the NIID when compared to the number of vehicles registered in the country.
On third party motor insurance business, he stated that “following unhealthy competition in this class of business and the lingering issue of fake Third Party Motor Policies in circulation, the Association is in addition to the deployment of the NIID considering other measures that will reduce unnecessary competition and inappropriate pricing of Third Party Insurances.”
He explained that a Committee is already working out the process and it is expected that the implementation will commence before the 2nd quarter 2017.
On market penetration, Efekoha said the Association and its members have continued to pursue policies that will improve insurance penetration in our market.
“We member companies have identified Bancassurance, Microinsurance, web aggregators and Telcos as veritable channels that are capable of fast-tracking penetration.
“However, there are challenges with the regulatory approval required for effective take off of these schemes, but the good news is that the Association is working closely with the National Insurance Commission to find solution to the challenges.
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