LAGOS – Inter-state motor transport companies that usually charge commuters insurance fees which[pro_ad_display_adzone id=”10″] they claimed was for an insurance company to indemnify in the case of accidents, may after all be fleecing them.
An investigation by the News Agency of Nigeria (NAN) in Lagos reveals that the transporters charged
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between N100 and N200 as insurance fees for each passenger per journey.
But such monies which sometimes are built into the fare, NAN learnt, are not remitted to their insurance companies.
They claimed that in the case of accident which most times led to death or disability that their insurance companies would indemnify the victims.
When a NAN correspondent visited some of the motor garages in Lagos on Wednesday, the transporters neither revealed the names of their insurance companies nor showed evidence that they remitted such monies to them.
The transport operators accepted that they charged such fees but failed to say if they remitted such to their insurers or had indemnified accident victims.
Mr Alex Udoh, Administrative Manager, Akwa Eminent Transport, which is a division of Akwa-Ibom Transport Company, said the company did a comprehensive insurance policy for all its buses.
“The comprehensive insurance also covers the passengers. We do not collect extra money apart from the transportation cost to our various destinations,’’ Udoh said.
He said that only the Chief Executive Officer of the company could disclose the name of the insurance company which provided the cover.
Udoh also said that the company, with an office at Jibowu Bus Stop had not recorded any accident and that nobody had made such complaint.
At the Zion Transport Services, the Administrative Manager, who spoke anonymously refused to mention the name of the insurance company that covers it.
“It is true that we charge additional N100 apart from the normal fare but the money is for insurance. It is the management that knows the insurance company,’’ the manager said.
The administrative manager also said that none of the company’s vehicles had been involved in accident recently but that issue with the insurance contract with company well fashioned out.
At the Yaba office of Young Shall Grow Motors, the Administration Manager, who did not disclose his name refused to speak on the issue, saying that it was only its management that could speak on its insurance policy.
A competent source at the Association of Luxury Bus Owners of Nigeria told NAN that it was regrettable that transporters were not willing to reveal the names of their insurance companies.
He said that for the past five years since the transporters started collecting the extra charges no passenger had made any claim of being involved in an accident.
“To the best of my knowledge, the association has never received a letter from any customer making a report that he was refused or paid insurance claims.
“Except the passengers or victims come out, people will not know if the transporters pay the money or not,’’ the source said at the Ebute Meta office of the union.
However, Mr Temitope Bello, Brand Manager, Custodian and Allied Insurance Ltd, explained that the various transport companies insured their businesses without particularly stating that it was for passengers.
“The insurance agreement or policy is usually between the transport company and the insuring company.
“The transporter does not state in the life or comprehensive insurance policy that passengers are included.
“If the transporter decides to add money to their fare, it will not be stated in the policy that a particular amount is paid as insurance for the life of passengers,’’ Bello said.
He said that the insurance cover was a corporate agreement between the insurance and transport companies, adding that the passengers were not involved. (NAN)
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