By Rosemary Onuoha
Insurers have been forced to cough out over N11 billion to settle all outstanding claims in their books, owed consumers for over three years running, Vanguard investigation reveals.
Following the directive given to insurers late last year by the National Insurance Commission, NAICOM, to wipe out all outstanding claims from their books, the affected insurers were forced to comply.
Recall that NAICOM, late last year, collated claims details from all insurance companies and complains on delayed and unsettled claims from members of the insuring public in its efforts to verify the persistent complains of consumers of insurance about the attitude of the providers that has brought the image of the industry to disrepute. Some of the delayed and unsettled claims have been hanging for over three years and more.
Vanguard investigations revealed that insurers that were guilty hurried to settle all outstanding claims in their books for fear of being sanctioned.
Commissioner for Insurance, Mr. Mohammed Kari, said that the response from insurers to the mandate edged up the confidence level in the insurance industry.
However, Kari noted that companies that were not able to meet the deadline have been penalised appropriately with further sanctions placed on them.
According to NAICOM, in its continued effort to sanitise the industry and restore the confidence of the insuring public, all insurers are directed to handle all claims strictly in accordance with the provision of the Insurance Act, 2003.