Fraud: Insurers lease professional certificates for fee


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Chuks Udo Okonta

Whenever an insurer presents a professional certificate to you ensure you verify for it may be a lease document, as it has been alleged that the act has become money-spinner in the industry.

The Managing Director Consolidated Hallmark Insurance Plc, Eddie Efekoha, at a forum in Lagos, identified the vice as one of the unethical practices that is perpetuated by insurers.

He posited that unethical practices in the industry include: Leasing of AIIN certificates for fee; rate cutting; unhealthy competition; rebates and illegal payments to intermediaries; refusal to pay claims.

Others according to him, are: claims purchasing; poor representation of clients and collusion with clients to exaggerate claim amount or claim for uninsured losses.

He identified greed; lack of transparency; peer pressure; societal influence; competition and inadequate monitoring/enforcement as main causes of unethical conducts in the insurance industry.

Efekoha said without ethics, integrity and proper conducts worthy of emulation, operators are mere paper peddlers on the streets with nice suits and shoes.

He urged operators to imbibe the spirit of professionalism in the discharge of their duties and that they must constantly ask themselves everyday – “Have I acted in my line of duty as a professional today?”


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