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Chuks Udo Okonta
Worried about unpaid monthly pension benefits to annuitants and claims to the insured, concerned policyholders have called on the National Insurance Commission (NAICOM) to take over the management of African Alliance Insurance Plc inorder to revive the firm and redeem image of the sector.
The concerned policyholders expressed their misgivings while responding to a report by this medium with the title: NAICOM takes tough position on prompt claims payment.
According to them, the insurance industry regulator should move beyond speaking to acting, stating that the African Alliance Insurance issue, should be a test on its resolutions on prompt claims payment.
They noted that African Alliance Insurance challenge is not just for the company, but for the entire industry as the public that has before now nursed an apathy for insurance would because of the issue stay away from other companies products.
A concerned policyholder said: “They are destroying the whole of Annuity Business (both the Retiree Life Annuity and other forms of Annuity) as Nigerians are losing trust in the industry delivering on annuity promises.
“As it stand now even me, an Insurance Professional, cannot opt for retiree life annuity (which otherwise would have been my choice) neither will I advise anybody to go for annuity since NAICOM cannot fulfill its promises based on which people had the confidence to buy Life Insurance and Annuity.”
He called on NAICOM to urgently move in and take over the management of the company, which would enable it have an overview of the financial position of the ailing firm.
He noted that NAICOM shouldn’t wait as it did when Niger Insurance and Standard Alliance Insurance were troubled only to moved in to withdrew their operational licences, a development that led to litigations and suffering on policyholders.
Another policyholder, who is one of the annuitants, implored NAICOM to pay the suffering annuitants and unpaid claimants from the firm’s statutory reserved domiciled with the Central Bank of Nigeria (CBN).
Recall that in July 2024 following increased complaints by annuitants and insurance claimants against African Alliance Insurance Plc in respect of the company’s delay and/or inability to fulfill its obligations, NAICOM gave a marching orders to the company to resolve and ensure settlement of outstanding claims.
The Commission said it had summoned the Board of African Alliance Insurance Plc to its headquarters in Abuja recently and ordered the company to settle outstanding payments due to annuitants and claimants. In addition, the Board of Directors of the company was directed to immediately submit a turnaround plan for addressing the challenges currently faced by the company which necessitated putting the company under the Commission’s Regulatory Order. Given the heightened challenges, the company should expect further actions if they fail to address the issues within the timeline the company has been given.
The Board assured the Commission that they would act on all the resolutions reached at the meeting.
The Commission wishes to restate its determination to ensure fair treatment of all stakeholders, enforce professionalism and good conduct amongst its licensed operators.
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