Tuesday, November 20, 2018 7.00PM / Ottoabasi Abasiekong and Bukola Akinyele, Proshare WebTV
The Insurance Industry is an integral part of the financial market as it plays a vital in deepening inclusion in the economy, providing customers the opportunity to hedge against potential risks in the environment.
It varies from economic, social, environmental to political risks in the country which informs the essence and value of its products and provisions.
Unlike Developed markets in the globe like the United States of America, United Kingdom and Canada, the Insurance industry in large frontier economies like Nigeria is still struggling.
From the analysis its penetration level in the country is not up to 3% and its contribution to the Gross Domestic Product of the nation is also well below 3%.
Apart from the need for awareness on the value having an insurance policy, the absence of innovative products remains another challenge and reason why even the pension industry, seems to be gaining traction than insurance.
The currency of trust for which insurance trades on remains a major concern in the country, going by history.
Talking about products and obviously deepening the industry, LASACO Assurance Plc a composite insurance and financial services company incorporated on 20th of December 1979 with specialty in general insurance and special risks business.
With the proposed Passenger Liability Insurance Cover in Lagos State, it will be interesting to see how this will change the insurance landscape.
This insurance cover is a partnership with the Lagos Taxi Drivers Association, a vibrant and strategic trade group in the urban transportation industry.
Understanding Passenger Liability Cover
From a Global perspective Passenger liability cover protects a business if they are found liable in terms of law for the injury or death of their passengers transported in the business vehicle.
Most insurance companies have policies that help in regulating the passenger liability cover, whenever a transport company wants to insure passenger liability cover there is a limit and some of the factors that might determine the limit are the number of passengers the vehicle is carrying and the country where taxi business travels to.
It is important to note however that this insurance only covers when the passenger is in the vehicle whether it is stationed or it is moving, as it is most times confused with public liability.
There is also the debate of whether Passenger Liability Insurance is Compulsory for a Service Company, as we know that insurance is the protection of people, property and service from unknown future happenings.
In Africa countries like South Africa and Kenya have certain Acts in place to propagate passenger liability cover.
Considering the need to have a clear insight into the scope and workings of the proposed passenger liability insurance cover that will have the Lagos Taxi Cab Drivers, we will engage all stakeholders in the second part of this story including the Nigeria Insurers Association, on how this will shape the industry.
This is important as it should go a long way in creating the awareness and understanding of the passenger liability insurance cover in Lagos, which could serve as a template for others