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Chuks Udo Okonta
Do you know that it is an offence, if an insurance company fails to notify you of renewal 60 days to expiration of a policy?
The National Insurance Commission (NAICOM) in its 2022 Revised Market Conduct and Business Practice Guidelines for Insurance and Reinsurance Companies, stated that insurers should ensure their clients receive renewal invitation at least 60 days to expiry and issue subsequent reminders.
NAICOM in section 1.7.0 and
1.7.1 of the guidelines and under the headline, Policy Servicing (After Sales Service), stated that insurance institutions shall:
A. Service policies diligent through to the point at which all obligations under the policy have been satisfied.
B .Disclose to the policyholder information on any changes that are likely to affect the terms and conditions of the contract and give reasonable
notice before any changes take effect.
C. Where there are changes in terms and conditions, notify the policyholder of their rights and obligations regarding such changes and obtain the policyholders consent.
D .Ensure fair treatment in the event of switching between products or early cancellation of a policy.
E. Ensure that the client receives the insurers renewal invitation at least 60 days to expiry and issue subsequent reminders.
F. Ensure that its client is aware of the expiry date of the insurance even if it chooses not to offer further cover to the client.
G. Ensure that renewal notices contain a requirement for keeping a record (including copies of letters) of all information supplied to the insurer for the purpose of renewal of the contract.
According to Assistant Director, Corporate Strategy and Special Duties, NAICOM, Dr. Usman Jankara, insurance companies not complying with these stated rules risk sanctions. Therefore, whenever you are penalised for parading expired policy, especially motor insurance, leverage this rules and tackle the erring insurance companies.
From investigation, many insurance companies violate these rules and it is time to enforce it and make firms not complying to face the consequences.