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Chuks Udo Okonta
The National Insurance Commission (NAICOM) has withdrawn and canceled the circular on Tier Based Minimum Solvency Capital (TBMSC) policy.
A circular signed by the Director, Policy and Regulation, NAICOM, Pius Agboola, for Commissioner for Insurance, entitled:Withdrawal of Circular on Tier Based Solvency Capital Policy for Insurance Companies in Nigeria and issued to all insurance companies, reads: “Pursuant to the powers conferred by the enabling laws, the Commission hereby withdraws and cancels the Circular dated August 27, 2018 with reference number NAICOM/DAPCIR/14/2018 and titled Tier Based Solvency Capital Policy for Insurance Companies in Nigeria.”
It noted that the withdrawal and cancellation takes immediate effect.
Observers are of the view that the withdrawal and cancellation may probably be connected to the litigation by shareholders, who were not comfortable with the policy.
They noted that the step taken by the regulator, is aimed at terminating the litigation as the parties in court would no longer have any base to pursue their case.