Insurance

Underwriters owe Loss Adjusters over N250m

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Chuks Udo Okonta

Insurance Loss Adjusters have cried out over the N250 million unpaid fees by underwriters.

A Loss Adjusters, who does not want to be named, told Inspenonline that the debt is threatening their operations, stressing that it is worrisome that, after providing their professional services, underwriters settle the claims for which they were engaged and failed to pay their fees.

The Adjuster called on underwriters presently owing to pay so that adjusters can continue to offer their professional services.

Worried by the development, the National Insurance Commission (NAICOM) last month issued a circular mandating underwriters to obey their agreements with adjusters or face sanctions.

It was learnt that some underwriters are yet to obey the warning issued by their regulator.

The circular with reference number: NAICOM/DAP/CIR/03/2018, entitled: Inter Company Balance and Payment of Loss Adjuster’s Fee, dated March 8, 2018, signed by the Acting Director, Authorization & Policy, NAICOM, Leonard Akah, for the Commissioner for Insurance, Mohammed Kari, stated that the commission has noted with serious concern the delay and in some cases none payment of loss adjuster’s fees promptly by operators the adjusters worked for.

NAICOM mandated underwriters to settle their portion of loss adjusters’ fees not later than 10 days after the submission of the adjusters’ report to them, stressing that where a lead underwriter pays the fee on behalf of the co-insurers, the co-insurers should reimburse the lead their respective proportions of the fee within five working days of the settlement of the adjuster by the lead underwriter.

“All underwriters are by this circular required to settle all outstanding loss adjusters’ fee claims due to lead underwriters/cedants arising from co-insurers, facultative and reinsurance transactions within 30 days from the date of this circular,” the regulator said.

NAICOM urged all underwriters to submit to it evidences of compliance with the directive not later than 45 days from the date of issuance of the circular, adding that any underwriter that fails to comply with the directives will be sanctioned appropriately.

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