Insurance

Shareholders threaten to seek compensation from NAICOM over cancelled TBMSC policy

Shareholders at an event

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Chuks Udo Okonta

There is a new twist to the withdrawal and cancellation of the Tier Based Minimum Solvency Capital (TBMSC) policy, by the National Insurance Commission (NAICOM) as shareholders who went to court to challenge the policy have threatened to demand compensation before the case can be put to a rest.

According to them, the decision by the insurance industry regulator to withdraw and cancel the policy would not amount to the end of their litigation. They vowed to press further to seek compensation as they have expended money on engaging solicitors and processing the case.

One of the leaders of the shareholders group, told Inspenonline that NAICOM has to pay for its missteps, stressing that shareholders would not remain silence and watch regulators live above the laws put in place to direct their affairs.

He said shareholders would henceforth begin to challenge all wrong steps taken by regulators which are inimical to their investments.

According to him, the case filed in court will not die a natural death due to the withdrawal and cancellation of the policy.

He called on regulators to regulate with who face, adding that regulators exist because there are organisations to oversee and that when the organisations go under, the regulator would also go with them as there would not be any function to execute.

NAICOM had yesterday announced its decision to withdraw and cancel 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, Mohammed Kari, 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.”

NAICOM noted that the withdrawal and cancellation takes immediate effect.

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