By David Akinmola
The Nigerian Insurers Association (NIA) has assured insured public that the Industry’s Reform Bill will improve legislation protection by creating a compensation fund for victims of liquidated underwriting firms in the country.
The association’s Chairman, Kunle Ahmed, made the assurance in a paper delivered at the quarterly briefing in Lagos at the weekend, saying the Bill is a major piece aiming at overhauling the regulatory framework of the Nigerian insurance sector.
However, the Reform Bill for provisions designed to care for insurance consumers adequately. A fund has been set aside to meet requests of policyholders whose primary insurance company is liquidated or faces major challenges, addressing occurrences in the sector.
According to him, the Bill also reflects increased capital requirements, which we believe will lead to a stronger and more virile insurance companies that can develop new tailored products to the public and address the pain of consumers.
Ahmed explained that in the Bill, fund is included for uninsured road accident victims, adding that these sections of the Bill are expected to enhance trust and confidence in the insurance industry.
On the Tax Reform Bill at the National Assembly, the NIA boss said that the NIA has made a representation to the government regarding the taxation of insurance premiums, noting that the insurance premium belongs to shareholders and should not be taxed.
According to him, “Changes to any tax bill could impact various sectors of the economy, including insurance. We have made a representation to the government regarding the taxation of insurance premiums, emphasising that some premium belongs to shareholders, especially on the life insurance side, and this concern is being taken seriously.”
On the enforcement of third-party motor insurance in Nigeria, Ahmed commended the Inspector General of Police and the Commissioner for Insurance for their commitment to protect Nigerians on the road.
“For us at NIA, the enforcement of the third-party policy is largely to the benefit of policyholders.”
“Policyholders are entitled to compensation for their liabilities in terms of injury or death to third parties, which is unlimited.”
According to him, member companies of the NIA have seen slight growth in third-party policies since the pronouncement, but noting that the figures are not handy.
The enforcement of the third-party policy is a welcome development for the economy, for the insurance companies, and policyholders.”
“We expect to see a situation whereby motorists do not get out of their cars and fight when accidents occur.”
Also the Director General of NIA, Mrs. Bola Odukale, who attested to the development in the industry, while stressing the vital of claims payment
said the hallmark of any licensed insurance company is the timely payment of claims.
Despite the number of claims paid, we believe there is more to achieve in terms of the ease and timeliness of claims payments. Insurance companies are ready and willing to pay valid claims. The hallmark of any licensed insurance company is the timely payment of claims.
The DG, said the industry is working to harmonise the claims process to limit the number of documents required for claims to be paid, stating that the Technical Committee comprising NIA and the Nigerian Council of Registered Insurance Brokers (NCRIB) is working to set the minimum documents required.
On the publication of pending claims in the books of some insurance companies by the National Insurance Commission (NAICOM) on their website, Ahmed said the action has given comfort to policyholders.
While stating that all the c, companies in the industry have been put on notice, he said the Commission is watching and there is a zero tolerance to nonpayment of genuine claims.
