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The National Insurance Commission (NAICOM) has warned insurance practitioners to desist from unfair trade practices to avoid sanctions.
NAICOM stated this in its recently released Revised Market Conduct and Business Practice for Insurance and Reinsurance Companies.
The insurance industry regulator warned that insurance institutions should not engage in any form of unfair practices which include but not limited to the following: Making or causing to be made any misrepresentation concerning the benefits, advantages, conditions, or terms of an insurance policy; providing false information or failure to make full disclosure of all requested information on an application for a company’s product(s); using false or misleading information to induce the lapse, forfeiture, exchange, conversion, or surrender of an insurance policy and obtaining money or property using false statement of a material factor
deliberate omission of a material fact in order to make the false statement
Continuing, it submitted that they should also avoid employing any device, scheme, or artifice to; facilitate return of a portion of the premium/commission to the policyholder/customer following the procurement of an insurance policy; granting rebate on premium or commissions, or offer of any benefit, except those benefit specified in the policy, to induce the sale of an
insurance product; sny offer of inducement to enter into any insurance contract, or to receive a quote, submit an application or in connection with any other solicitation for sale of insurance; or de-marketing of any insurance institution or any false description of the features of another company’s policy to induce the replacement of that policy with another.
It also kicked against submitting false financial bid for inclusion in the list for insurance placement.
NAICOM maintained that the guidelines shall apply to all insurance Institutions, stressing that all insurance Institutions are required to ensure strict compliance with the guidelines by formally directing their staff to comply.
It submitted that every insurance Institution shall establish internal policies and procedures to give effect to the provision of the guidelines and shall form part of its internal control.