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Chuks Udo Okonta
The National Insurance Commission (NAICOM) has said any insurance institution that fails/neglects to comply with any provision of the Guidelines for Insurance of Government Assets and Liabilities for Ministries, Departments and Agencies of Government and Other Stakeholders, issued on October 28, 2023, shall be penalised in accordance with extant insurance law and regulation.
NAICOM stated this in the guidelines, stressing that 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.
Head, Corporate Communications and Market Development NAICOM ‘Rasaaq Salami, told Inspenonline that the multi sectoral committee set up to oversee the full implementation of compulsory insurances which include government’s assets have commenced meetings, stating that the committee has also raised four sub committee to ensure easy implementation of the stipulated rules.
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 contravened 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 contravened the
regulation.
