The National Insurance Commission (NAICOM) has cautioned the Ministries, Departments, and Agencies (MDAs) against contravening any of the provisions of the Guidelines for Insurance of Government Assets and Liabilities in the country.
The commission also said that any insurance institution that fails to comply with any provision of its Guidelines for Insurance of Government Assets and Liabilities and others shall be penalised, following extant insurance law and regulation.
NAICOM noted that such a penalty on non-performing operators could be extended to blacklist the defaulters from participating in the government insurance and withdrawal of their operating licenses, as the case may be.
Speaking on the development, the Head of Corporate Communications and Market Development of NAICOM, ‘Rasaaq Salami, said the multi-sectoral committee set up to oversee the full implementation of compulsory insurance which includes the government’s assets, has commenced meetings and also raised four sub-committees to ensure easy implementation of the stipulated rules.
NAICOM is also ready to drag any ministries, departments, and agencies of government that contravened the rules before the Secretary to the Government of the Federation to strengthen the implementation of the set guidelines.
The commission stressed that it shall be illegal to inflate the premium payable by any MDA regarding the insurance of government assets and liabilities.
It added that MDA shall not pay premiums above the actual premium on an insurance policy that may result in a 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.
NAICOM reiterated that any MDA that acts contrary to the regulation shall be deemed to have contravened the law.
“The individual officer(s) involved shall be deemed to have committed gross misconduct and may be reported to the appropriate authority,” the Act stated.
NAICOM stated that MDAs should ensure that all government assets and liabilities in their custody/supervision are adequately insured at all times, stressing that all MDAs shall procure insurance cover for adequate protection of government assets and liabilities, including mandatory items to be insured that fall under compulsory insurance policies and that this would, however, be subject to budgetary appropriation by the MDA – approved budgetary provision.
It highlighted that MDAs shall provide information yearly to the commission on all its insurances. In compliance with the premium collection and remittance provisions in the market conduct guidelines, insurance cover for an MDA shall only be provided on a strict No Premium No Cover basis.
According to the commission, MDAs shall effect payment of premiums to enable the renewal of their insurance not later than the effective date of the insurance contract.
