Insurers Rue N46Bn Loss, Seek Computerization of Marine Insurance

Worried by loss of premium income estimated at over N46 billion yearly at the nation’s seaports; insurance institutions have sought the intervention of federal lawmakers.

Also, a  technical arm of the Nigerian Insurers Association (NIA), Legal Committee (LC) had in a review of the presentation to the Senate Committee on Marine Transport on the problems confronting marine insurance in Nigeria, urged the committee to expedite action on the process of computerising the authentication of marine insurance certificates.

NIA also pointed out that the insecurity problems in Nigeria and multiple checks carried out at the ports have forced the Joint War Committee of Lloyds and London underwriters to include Nigeria as one of the most expensive countries/trading zones, where vessels could only come on the payment of additional premium for war risk cover.

Samuel Oduroye, chairman of the Legal Committee, in the review of the Customs and Excise Management Bill - June 2012 to May 2013, said “the process of computerising the authentication of marine insurance certificates should be expedited as the estimated N46 billion being lost through fake documents is substantial to warrant urgent action to prevent these leakages”.

Oduroye added, “Provision should be made for electronic invoices that will be issued to customs, importers and insurers to reduce the incidence of under-declaration in the systems and allow for easy monitoring by concerned stakeholders.”

He also stressed that the country should also adopt the electronic tracking system for vessels plying its waters for a more effective monitoring of their movements.