Nigeria’s National Insurance Commission to sack chief executives over unpaid claims

Nigeria’s National Insurance Commission (NAICOM) has revealed plans to work on statutory deposits of insurance firms to settle unpaid claims, while chief executives of companies whose deposits are applied to such would be discharged from official duty.

Nigeria’s Commissioner for Insurance, Mohammed Kari, disclosed this at the ongoing Chartered Insurance Institute of Nigeria (CIIN) 2017 Professional Forum in Abeokuta, Ogun State.

He noted that the Commission had received requests from claimants to apply companies statutory deposits to settle discharged claims, as stated in the law, stressing that the process had already commenced.

He said the Commission has also beamed its light on intermediaries that hold back clients and companies’ money or collude to steal or corruptly keep it, adding that such actions are criminal and would be forwarded to the appropriate law enforcement agencies.


Kari said NAICOM and the Economic and Financial Crimes Commission (EFCC) had recently agreed to establish a joint task-force to among other things, ensure corruption is weeded out of the insurance industry.

“We are however alarmed by the incessant complains of failure of insurance companies to settle genuine claims and discharge claims to policyholders. These sad failures include the companies’ inability or refusal to settle inter-company balances.

“These claims and balances have risen to an unacceptable level where again we are now required to withdraw the self-regulation option given operators to total enforcement of the law,” he said.

The Governor of Ogun State in Southwestern Nigeria, Senator Ibikunle Amosu, urged insurance operators to embark on massive sensitisation and develop products tailored toward the needs of the public, he also called on the operators to use their operations to create wealth and collaborate with the government on infrastructural development.

He urged the operators to also collaborate with higher institutions to boost insurance knowledge, stressing that his administration would continue to provide the conductive environment for businesses to thrive in the state.

The Alake and Paramount traditional Ruler of Egbaland in Ogun State, His Royal Highness, Oba (DR) Adedotun Aremu Gbadebo, charged insurance operators to play according to stipulated rules, adding that insurers should not take up businesses and go about praying that claims should not come.

The President, Chartered Insurance Institute of Nigeria, Funmi Babington-Ashaye, said the theme of this year’s Forum of Insurance Professionals:
“Solvency, stability and Growth-exploring Possibilities,” was specially and carefully chosen to draw attention to some of the critical challenges currently facing the Industry. This is so that, as a collective, the participants can evolve strategic solutions for the benefit of Industry.


This article earlier appeared here



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