Premium Volume: Okada Riders Gets Insurance at N10 Daily Premium

The palpable fear that characterises the patronage of commercial motorcycles in Nigeria, especially in the cities, may soon wear a garment of hope. This is because, the dearth in premium earnings from that section may soon get a boost as some insurers come together to reap the gains in that promising market.
It would be recalled that Standard Alliance Insurance, leading a consortium of insurers, unveiled its mission to insure okada riders and their passengers. This partnership agreement, involves Sovereign Trust Insurance, Crystal Life Insurance, and Hilltop Insurance Brokers, in collaboration with the Amalgamated Commercial Motorcycle Owners and Riders Association of Nigeria (ACOMORAN).
The agreement which also have a Joseph Tsuwa in the arrangement, was said to have been jointly designed under the National Enhancement Welfare Scheme (NEWS)
Commenting on the consortium, spokesperson for the SA Group, Bimbo Ogundokun, explained that the idea was hatched against the backdrop of their earlier interest in that direction. According to the company spokesperson, SA Group already had a product wrapped around okada riders, but “realised the need to partner with the association in the country. She added that it was with that passion that they sought the cooperation of the riders association, in order to “fine-tune the product” to reach the present level.
Under the package, interested okada riders are expected to register with the consortium, after which they and their passengers are expected to be covered. The expected windfall from the programme, small as the premium seems to be, will be enormous, in what industry watchers have estimated to be huge, on the basis of the over eight million registered riders across the country. The riders are expected to pay a token premium of N10 daily, by obtaining tickets daily, in order for them to be captured, for as long as they pay their premiums.
 “With proper organisation and enlightenment, all the stakeholders including the insurance companies and the Okada riders will see the benefit of insurance,” the spokesperson said. Ogundokun added that the consortium was hopeful that with this arrangement, there will be sanity, especially against the background that the sum is small at the rate of N10 premium per day.
Also contributing to the agreement, Alhaji Sani Mohammed, National President of the association, explained that that if a registered okada rider is involved in an accident, he stands to benefit from medical treatment up to the tune of between N100, 000 to N150, 000, while his passenger will also be entitled to treatment up to the tune of between N50, 000 to N100, 000. Already, the scheme has started to attract the attention of insurance companies.