NIIRA: 17 sins that can kill insurance company licence

Kindly leave a comment and share

Chuks Udo Okonta

As the Bible says, for the wages of sin is death…, the Nigerian Insurance Industry Reform Act (NIIRA) has stated the 17 sins that can kill the licence of an insurance company when committed.

According to NIIRA the sins are:

*Failure to conduct insurance business with sound insurance principles.

*Failure to satisfy the capital or solvency requirement as prescribed by the Commission.

*Cease to carry on the business of insurance and the primary purpose for which it was registered for at least one year in Nigeria.

*Applied in writing for the cancellation of its licence as an insurer.

*Has a judgment debt in relation to a judgment obtained against it from a court of competent jurisdiction in Nigeria which remains unsatisfied for 90 days and there is no appeal pending against the judgment.

*Carrying on simultaneously the insurance business with any other business which is detrimental to its insurance business.

*Transferred to or amalgamated with the business of any other insurer.

*Refuse to submit to an examination of its books as provided for in the Act.

*Failed to comply with the provisions of the Act relating to filing of returns with the Commission.

*Failed to maintain adequate reinsurance arrangements with treaties in respect to the category of insurance which the insurer is authorised to transact.

*Lacks the necessary expertise by virtue of a substantial reduction in the number of its qualified employees.

*Has a net assets below the minimum capital and capital injections have not been made within the time stipulated by the Commission.

*Has not less that five complaints of failure to pay claims promptly made against it which the Commission has received and verified.

*Has failed to set up the special reserves as prescribed by the Commission.

*Act in any manner, without the approval of the Commission, in case where the Act requires such approval.

*Has been wound-up or dissolved or has gone into liquidation.

*Failed to maintain reserves as required under the Act.