Insurers to pay fine on policyholders complaints resolved by NAICOM
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Chuks Udo Okonta
Determined to sanitise the insurance industry and stop frivolous excuses that often push policyholders into flooding the National Insurance Commission (NAICOM) with complaints, insurance companies would henceforth pay for all cases resolved by the regulator.
This was part of the resolutions reached at the Insurers’ Committee Meeting held today in Lagos.
Briefing journalists after the meeting, Head, Communication & Stakeholders Management Sub-committee and Managing Director Rex Insurance Limited Mrs. Ebelechukwu Nwachukwu, said NAICOM has charged insurance companies to operate ethically and live up to their claims payment responsibilities, as they have to pay for the time spent by NAICOM in resolving issues between them and their policyholders.
She noted that NAICOM also charged the operators to settle all outstanding claims and see reasons to settle claims.
She said the Commissioner for Insurance and Chief Executive Officer of NAICOM Segun Omosehin, at the meeting told the operators that NAICOM would soon expose draft guidelines on motor third-party insurance that would help strengthen that class of insurance business.
According her, the issue of solvency was also addressed, by the regulator and it was agreed that the regulator would organise a meeting with the operators to effectively address the issues identified around companies solvency levels.
She submitted that the meeting agreed to sustain awareness on motor third-party insurance to enable the public understand fully how it operates.
Recall that the National Insurance Commission in its ongoing efforts to effectively address complaints and ensure swift resolution to all Insurance related issues has launched the NAICOM Complaint Management Portal.
The portal can be accessed via:
complaints.naicom.gov.ng
The portal offers a streamlined and user-friendly platform for addressing all Insurance related complaints.
The Commission is urging the public to effectively utilise the platform to reach out to the Commission on all Insurance related complaints.
Inspenonline.com, I thank you very much for posting the outcome of the meeting NAICOM had with insurance companies in Lagos. Though you did not state the date the meeting took place.
From what I read from the post, some decisions were made relating to the operation of the insurance companies (IC) in Nigeria. The decisions included the following:
1. That ICs to operate ethically and live up to their claims payment responsibilities;
2.ICs to settle all outstanding claims;
3.NAICOM to convene a meeting with operators to effectively address the issues identified around ICs solvency levels; and,
4. That NAICOM had launched a NAICOM Complaints Management Portal.
I commend NAICOM for coming up with these decisions. What remains to be seen is the implementation of these decisions especially decisions (2) & (3). These are areas policy holders are having problems with ICs. A case in point is that of African Alliance Insurance Plc (AAPLC). NAICOM, after identifying some problems with AAPLC sacked the then board and management of AAPLC and appointed interim Board and Management (IB&MT)in October, 2024 to turn around the operation of AAPLC. In one month of assumption of duty, the IM&MT paid policy holders four months out of the outstanding payments.
For policy holder like myself, AAPLC was owing me annuity payment from May, 2024.The IB&MT paid me four months and since then they have not made any further payments and no explanation. As at today, 28th February, AAPLC is owing me six months of outstanding payments.
I appeal to NAICOM, being the regulator of the Insurance Industry in Nigeria should be alive to its responsibilities which include effective monitoring and supervision of ICs in Nigeria. It should not wait until things get bad in any insurance company before NAICOM can intervene.
Lastly, we hope the complaints portal will be used by NAICOM to address the concerns of policy. holders.
Thank you NAICOM and Inspenonline.com.
The complaint mgt portal is not user friendly. It is full of technical jargons that an ordinary policy holder don’t understand.
On the directive that insurance companies should settle outstanding claims, NAICOM just gave an open ended directive. Some insurance companies are owing policy holders six months of outstanding payments. A case in point is African Alliance insurance company. NAICOM sacked the then board and management of the company and appointed interim Board and Management for African Alliance. This interim Board and Management just paid four months arrears of outstanding payments and nothing more. As of now they are owing some of its clients six months arrears of which I am.a victim. Yet under this condition, NAICOM is just watching. One expects NAICOM to resolve this matter with African Alliance if they are serious on the directive that insurance companies should settle all claims. In fact, they should give the companies specific period within which outstanding claims should be paid.
As NAICOM held a meeting with insurance companies, they should also create a forum for discussion with policy holders of insurance companies to hear some information that the insurance companies conceal to them.
Lastly, I want to appeal to NAICOM to look into the case of African Alliance Insurance. To me the interim Board and Management is still having some challenges. NAICOM being the regulator of the insurance industry should act fast to alleviate the suffering of the customers of that insurance company. Life is hard for the company’s customers due largely to failure and or refusal to pay the customers. Meanwhile, they pay themselves salaries promptly every month since they assumed duty.
I hope NAICOM will do some positive fast.
Thank you.