Credit note abuse: NAICOM, NCRIB task insurers to report brokers withholding premium beyond 30 days

Megaphone Hand, business concept with text Attention Please, vector illustration

Kindly leave a comment and share

Chuks Udo Okonta

The National Insurance Commission (NAICOM) and the Nigerian Council of Registered Insurance Brokers (NCRIB) have told insurance operators to stop lamenting on withholding of premium beyond 30 days by erring brokers, but should report them for necessary sanctions.

Worried about the abuse by some brokers on issuance of credit notes in the premium payment process, some insurers have called on NAICOM to abolish the concept, which allows brokers collect premium on behalf of insurance companies and remit within 30 days.

The Commissioner for Insurance and Chief Executive Officer of NAICOM Sunday Thomas, said the Commission would never condole any act that violates the industry’s stipulated rules, stating that it is up to the underwriters to report any broker breaking the rules.

He urged practitioners to always do the right thing, stressing that he has told the operators that as long as some people continue to misbehave, NAICOM would not stop issuing penalties.

The Deputy President Nigerian Council of Registered Insurance Brokers (NCRIB);Mrs Ekeoma Ezeibe, said if the credit note abuse had come before NCRIB, it would have gone to the Council’s Investigation Panel and that if found to be true, the broker would have not only been made to pay, but would have been referred to the Disciplinary Tribunal by the Governing Board.

The Executive Secretary of the NCRIB Tope Adaramola, said the council does not tolerate any form of unethical practices, whilst calling on any underwriters with genuine case to report such a vice to the NCRIB.

Responding to the call to report erring brokers, the concern underwriters said they are often blacklist by brokers whenever such a step is taken.

They implored all stakeholders in the insurance business value chain to play according to stated rules, stressing that the industry can’t grow amid unethical behaviours.

Shareholders who are not also comfortable with the holding of premium have at different fora, queried underwriters about huge trade receivables in their yearly financial accounts, amid No Premium No Cover regime.

Leave a Comment

Your email address will not be published. Required fields are marked *