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Chuks Udo Okonta
A Chartered Insurance Practitioner Wasiu Amao, has raised an alarm over non-compliance with no premium no cover regulation, as brokers do cancel credit notes upon expiry of 30 days ultimatum and underwriters warehousing claims when premiums were received late.
Amao disclosed this whilst speaking on the topic: ‘Market Compliance On Tariff Rated Products and The Financial Performance Of Companies. Focus on group life, fire and motor insurances’ at the the 2023 Chartered Insurance Institute of Nigeria – Offices Representatives Committee (CIIN-ORC) Workshop in Lagos, stating that brokers stop patronizing any insurance company that tries to enforce compliance.
He called for penalty on brokers who cancel credit notes upon expiry of 30 days of issuance and that underwriters need to unite and remain firm in handling compliance matters.
He submitted that enforcement of compliance should be a serious business for all regulators and government agencies, stressing that enforcement need to cover litigation.
“How effective is sanction working? I am not aware of any offender who have been prosecuted in a law court for non-compliance despite the provision of the law and jailed accordingly,” he posited.
He maintained that government should assist insurers who equally needs to be proactive in this regard.
He also canvassed publication of offenders in national dailies by the regulator.
The Executive Secretary Nigerian Council of Registered Insurance Brokers (NCRIB) Tope Adaramola, reacting to the allegation against brokers, said such an allegation should be substantiated by reporting an erring broker to the National Insurance Commission (NAICOM) and NCRIB, adding that it is not enough to make a generalisation without identifying broking firms breaking the law.
Director General Nigerian Insurers Association (NIA) Mrs. Yetunde Ilori, also implored insurance practitioners to report defaulting underwriters to the association and NAICOM for disciplinary actions, stressing that the association had in recent time cautioned firms reported to be engaged in unethical practices.
She submitted that while the association deals with erring members, NAICOM as the industry regulator would also imposed regulatory sanctions on them.
She noted that the industry can never attained the desired growth if practitioners don’t adhered to rules and regulations.