Liquidation: NAICOM should close insurance firms with just N1,000 third party product sold via VIO – Insurer


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Chuks Udo Okonta

The liquidation threat issued by National Insurance Commission (NAICOM) has continued to generate reasons as an insurer has implored the industry regulator to liquidate firms that have just third party product, sold at N1,000 in Vehicle Inspection Office (VIO).

The Deputy Commissioner, Technical, NAICOM, Sabiu Abubakar, who represented the Commissioner for Insurance, Sunday Thomas, at the Chartered Insurance Institute of Nigeria (CIIN), Second Edition of 2022 Business Outlook Seminar, in Lagos, yesterday, handed down the liquidation threat.

“Recently two insurance Companies licenses have been withdrawn and these are; Niger Insurance and Standard Alliance Insurance. Though managing the death/failure of Financial Institution is very demanding, nevertheless more may still be liquidated in order to sanitise the Insurance sectors,” he posited.

An insurer, Akintunde Sunday, while commenting on a social media platform Insurance Practitioners Forum in Nigeria, said the threat is fantastic, adding that many firms are long overdue for liquidation.

He went further to list conditions on which firms should be liquidated.

He said: “Any Insurance company that has no regards for genuine claims payment as at when due, with long standing outstanding claims of 5 years up to and more than ten years are not fit to remain in operation.

“Any Insurance company owing fellow underwriters, Insurance Brokers, Tax Authority, Pension Fund Administrators, the Nigerians Insurers Association, Reinsurance companies and ECOWAS Brown Card claims do not deserve to remain in operations.

“Any Insurance company whose corporate philosophy is to use employees, owe them outstanding salaries, force them to cancel 50 per cent each operating year with fictitious and scandalous agreement on and employ victimisation tactics to silent it’s employees opposing this activities which are in opposite directions with the standard operating guidelines laid down by the National Insurance Commission of Nigeria (NAICOM) is not fit for continued operation.

“Any Insurance company using manual operation in this ICT era to manipulate reports and downplay good efforts of the Commission to move the industry forward is not fit to remain in operation.

“Any Insurance company whose only product is N1,000.00 Third Party insurance sold through the VIO is not fit to remain in operations.

“Any Insurance company operating with 2017 approved account whilst those of 2018 to date are yet to be approved is not fit for continued operation.

“Any Insurance company without designated portfolio accounts to address emerging claims and most importantly no Life Fund to pay Life Benefits to the innocent Life Assurance subscribers is not fit to continue to operate in Nigeria irrespective of the ownership and interest running it.”

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