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Chuks Udo Okonta
The enactment of the Nigerian Insurance Industry Reform Act (NIIRA) 2025 has brought key developments to insurance operations and provided great benefits to policyholders.
It is expected that the proper execution and enforcement of the Act will impact positively on the lives of policyholders, thereby also improving insurance products sales and profitability for the insurance industry.
These are seven key benefits the NIIRA 2025 provides for policyholders
*Prompt claims payments.
The NIIRA has provided that any insurance company that has not less than five complaints of failure to pay claims promptly made against it which the National Insurance Commission (NAICOM) has received and verified risk cancellation of its licence.
This is contained in Section 8 sub-section 1(m) under the cancellation of licence.
*Tax relief
The NIIRA 2025 provides tax exemption on annuity payments by policyholders.
*Adequate insurance cover
The NIIRA 2025 provides for comprehensive insurance coverage on governments’; private lives and properties. These coverage would benefit policyholders greatly as their risks would be mitigated, and their lives and assets protected.
*Safe investments
With the enhanced capital provided by NIIRA 2025 through recapitalisation, policyholders investments such as annuity, endowments and other savings portfolios would be adequately secured as insurance companies would liquid enough to manage the funds.
*Sound regulations
One of the best provisions in the NIIRA 2025 is the power granted to NAICOM to effectively regulate the insurance industry.
With the enhanced power, NAICOM can now execute its responsibilities without unnecessary litigations from law breakers.
*Improved services
The NIIRA 2025 provides for robust capital, regulations and operations that would impact on service delivery.
The tough regulations from NAICOM would make operators effectively execute their responsibilities.
*Technology
With sufficient funds obtained from recapitalisation, insurance companies can deploy robust technology that would make policyholders have easy access to insurance.
One of the provisions is the presentation of electronic motor insurance policies to security officers by vehicle owners.
With this provision, vehicle owners who have expired motor insurance can obtain it digitally, generate their documents immediately to forestal harassment.
The NIIRA 2025 remains a game changer for all stakeholders in the insurance industry. The opportunities it provides, should be harnessed for the benefits of all.
