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The National Insurance Commission (NAICOM) has tasks insurance institutions to ensure that premium
quotes/rates for insurances of government assets and liabilities are supported with appropriate data/exposure analysis and other underwriting information.
NAICOM stated this in the Guidelines for Insurance of Government Assets and Liabilities for Ministries, Departments and Agencies of Government and Other Stakeholders, adding that no insurance operator shall impose, quote, offer,
pay or receive any rate/amount which is not within the range of rates earlier submitted to the commission in accordance with the rate filing requirements stipulated in the market conduct guidelines.
The insurance industry regulator noted that it shall be illegal to inflate the premium payable by an MDA in respect of the insurances of the government assets and liabilities.
It urged insurance institutions to conduct their relationship
with MDAs in line with the provisions of Market Conduct & Business Practice Guidelines, stressing that it shall be illegal to solicit, offer, pay or receive any rebates or discount which is not reorganised by extant insurance laws and regulations.
NAICOM said any insurance institution that fails/neglects to comply with any provision of the guidelines shall be penalised in accordance with extant insurance law and regulation.
According to NAICOM such penalty on non-performing operators could be extended to blacklisting the
defaulters from handling government insurance and/or the suspension or withdrawal of their operating licenses, as the case may be.
To ensure there is no weak link in the implementation of the set guidelines, NAICOM has also threatened to drag any ministry, department and agency of government that contravene the rules before Government of the Federal Republic of Nigeria (SGF).
According to NAICOM it shall be illegal to inflate the premium payable by
an MDA in respect of the insurances of the government assets and liabilities.
It noted that an MDA shall not pay premiums in excess of the actual premium on an insurance policy that may result in refund of the
excess amount paid or with the intent of returning the excess in any form, by cash or otherwise to the insured, its agents or any party thereafter.
The insurance industry regulator maintained that an MDA that acts contrary to the above shall be deemed to have contravene the
regulation.
