The owners of the impounded uninsured vehicles that were razed down at the premises of the LASTMA Friday, August 14, 2020, would regret for not having insurance policies for their vehicles as they are bound to lose millions of naira to the inferno, DAILY INDEPENDENT investigation can authoritatively reveal.
But those who had valid comprehensive insurance policies for their vehicles would have a chance to replace their burnt vehicles through insurance compensation even though the liabilities are on the state government agency that impounded the vehicles.
However, this may not happen in a situation where the owner had forfeited his vehicle which by law transfers ownership to the Lagos State Management Agency.
The insurance companies, DAILY INDEPENDENT investigation also gathered, have a right of recovery from the fire policies of the agency if it has or sue them for recovery if they do not have, on payment of claims to the victims to recover the money paid for claims to the vehicle owners.
Also noted is that holders of Third Party Motor Insurance can also file for claims as the incident happened in the public premises that ought to have public liability insurance.
Mr. Ekerete Gam-Ikon, an Abuja based Insurance Consultant, said those with comprehensive insurance will have to approach their insurers for compensation as stated in the contract in a situation where there is no clause that exclude an incidence of the LASTMA office.
“We must really sympathise with the victims in this situation, but consider the way compensation should be made to them. Yes, those that have comprehensive insurance will approach their insurers for indemnity as stipulated in their insurance contracts, hopefully, this situation would not have been excluded.
“It is interesting that this situation challenges our accountability protocols. Should LASTMA now have insurance against what may happen to vehicles within its premises? Should insurers now qualify insurance policies in this respect?
Like we say, insurance evolves and so this situation provides learning points for improvement in products and services offered by insurers.
“Valid comprehensive insurance policyholders should be compensated while third party policyholders can make the case for compensation too considering that the incident happened in public premises that ought to have public liability insurance.
Mr Paulinus Offorzor, Executive Director, Technical, Universal Insurance Plc said: “This is part of the benefits of having a comprehensive insurance cover. The damage done to the vehicles are covered under the policy.
“The insurance companies however, have a right of recovery from the fire policies of the agency if it has or sue them for recovery if they do not have. This is because although the vehicles were impounded, it has a duty of care to the owners of the vehicles to ensure their safety.
It will be a different case if the law provides that the vehicles have been forfeited by their owners once seized which now transfers the ownership of the vehicles to the state.”
Mr Babatunde Thomas, Managing Director, Legacy Insurance Brokers Limited described the incidence as which covers accident, theft, fire, explosion, self-ignition, riot as well as strikes, adding that Comprehensive Insurance provides indemnity to the insured in the event of loss or damage caused by fire.
He said that “the loss or damage to the vehicles parked at LASTMA office was caused by fire and as such it is covered if the owners have comprehensive insurance policy.”
