Kindly leave a comment and share
Chuks Udo Okonta
A company, firm or other combination of persons, each principal officer of
the company, firm or other combination of persons, who transact any insurance business without being licensed for that purpose, commit an offence and is liable on conviction, to a fine of ₦50,000,000.00 or to imprisonment for a term of two years; or to both, the Insurance Reform Bill, has proposed.
The Bill which is awaiting the second reading at Senate, also added that a person who transacts any insurance business without being licensed for that purpose under the Bill commits an offence and is liable on conviction, in the case of an individual, to a fine of ₦25,000,000.00 or to imprisonment for a term of two years or both.
This is contained on section 10 of the bill under the sub head – Operating an
unlicensed insurance business.
According to Insurance industry observers, if the Bill sail through and becomes an Act and it is enforced, the sanction would help curb the menace of fake insurance policies that has over the years continued to deprive the industry huge premium.
They noted that the industry loses billions of Naira yearly to policy counterfeiters, noting that on motor insurance business over 10 million vehicles on Nigeria roads possess fake policies.
They called for quick passage of the Reform Act and strict enforcement.
