The Nation Newspaper

Category: Insurance

  • Leadway boosts journalists’ knowledge on marine, oil and gas

    Leadway boosts journalists’ knowledge on marine, oil and gas

    Leadway Assurance Plc has boosted the skills and knowledge of media practitioners reporting Insurance on oil and gas, marine and aviation insurance as well as legislations and policies in the insurance sector.

    It was at a capacity building training, organised in partnership with the National Association of Insurance and Pension Correspondents (NAIPCO). The training was part of activities for the 2017 NAIPCO Conference.

    The training, which is the maiden edition of the initiative, focused on key areas including oil and gas insurance, marine insurance as well as legislations and policies in the insurance sector.

    Speaking on the training, Executive Director, General Business, Leadway Assurance, Ms. Adetola Adegbayi, reiterated the organisation’s commitment to empowering media practitioners to attain world class standard in the delivery of their profession.

    According to Adegbayi, the training was part of the Leadway’s contribution to improving the media sector through regular capacity development training.

    The media practitioners, who participated in the training workshop, commended the company for its laudable initiative designed to improve their skills and knowledge about the insurance industry.

    Its Managing Director, Riskshield, Roland Okoro, described the training as an initiative organised at the right time when the country was in need of balanced and accurate reporting.

    “This platform provided by Leadway Assurance is indeed, a positive one and is avaluable platform for knowledge acquisition for media practitioners,” Okoro added.

  • Mutual Benefits begins N2b Rights Issue next month

    Mutual Benefits begins N2b Rights Issue next month

    Mutual Benefit Assurance Plc is set to raise additional capital of N2 billion through rights issue this month, its Managing Director, Segun Omosehin, has said.

    He made this known at a dinner   by both Mutual Benefits Assurance Plc and its subsidiary- Mutual Benefits Life Assurance Ltd, in honour of their clients in Lagos.

    The N2 billion to be realised, he said, will enable the company to beef up its operations, give the it a better standing in the market and make it remain a big player in the Nigeria and Africa insurance markets.

    On innovation, he said Mutual Benefits is an unconventional company, which thrives more on innovation, adding that it wants to do things that are not the norms of the market.

    He said the company is open to new ideas and innovations that can help improve the market and the company’s bottom line.

    He disclosed that the firm will soon create a portal for insurance brokers and its partners across the country to ensure better customer service delivery.

    The portal, he said, will enable its partners log in and transact all forms of life and general insurance business without necessarily coming to their office.

  • NAICOM workers back after signing MoU 

    NAICOM workers back after signing MoU 

    The National Insurance Commission (NAICOM) has said its members of staff, who went on strike last week have returned to work after signing a Memorandum of Understanding (MoU) with the management.

    Head, Corporate Affairs NAICOM, Rasaaq Salami, in a statement said the strike was called off following an agreement reached between the management and members of staff in a peace meeting brokered by the Minister of Labour and Employment, Chris Ngige.

    The workers protested over unpaid allowances, poor welfare, lack of promotion, working tools and capacity building.

    Other area of grievance include delay in the review of insurance Act 2003 by the National Assembly, claiming that the proposed insurance bill, when passed, would move the sector and the commission forward.

  • NCRIB chief seeks autonomy for council

    NCRIB chief seeks autonomy for council

    The Nigerian Council of Registered Insurance Brokers (NCRIB) should be allowed to function without interference, the President, Sola Tinubu, has said.

    Tinubu, who stated this at his maiden Press briefing at Insurance Brokers House in Lagos, said neither he, nor his deputy, or the  Vice President  will interfer with the body’s operation, saying they will  ensure that the position of the President remains  ceremonial, just like a Chairman of Board of corporate institutions, in consonance with the provisions of corporate governance.

    He said changes in non-executive position take place  from year to year, leaving the secretariat intact to ensure  institutional building. He said the secretariat must be adequately empowered to drive the process at all times. He said his team shall empower the secretariat to discharge its responsibilities as expected.

    Tinubu listed some of his programmes as institution building, seamless succession plan; streamlining office of president to ceremonial roles; value addition to members; prudence and cost reduction as well as acceleration of revenue sources for the Council. Others are effective collaboration with other industry operators; enforcement of ethical standards; and effective collaboration with the regulator-National Insurance Commission (NAICOM).

    He said: “We will look holistically into the structure of the Council within the purview of law with the aim to building an enduring frame work. I am looking towards a Council that will be able to relate with other regulatory bodies on behalf of the brokers without interference. For instance, it should be the responsibility of the Council to relate with NAICOM on behalf of the brokers, bearing in mind that the President is primarily a broker with interest.

    “We have drawn a 10-year agenda for our Council. This was done in agreement with my next two successors, that is, the Deputy President and the Vice President. This is to ensure that we bequeath a well-entrenched institution to upcoming generation. I am looking at an institution where the President has a ceremonial overview of the Council, giving the Executive Secretary/Chief Executive Officer and his team a level of empowerment as it is obtainable in other professions and other climes. The Secretariat is the regulatory body for the brokers and the President is a broker and a competitor with other brokers in the industry.”

  • NAICOM licenses two Takaful companies

    NAICOM licenses two Takaful companies

    • Islamic insurance is Sharia compliant, says Sanusi

    The  National Insurance Commission (NAICOM) has licensed two Takaful companies to operate while the processing of other applications is on-going, Commissioner for Insurance Mohammed Kari has said.

    Kari, who stated at this the weekend in his goodwill message at the  inuaguration of the Kano Branch of Jaiz Takaful in Kano State, said Takaful Insurance would solve the challenge of public apathy to insurance, religious and cultural beliefs, especially in the North. Takaful Insurance is another name for Islamic Insurance and it is a unique Islamic concept of Sharia compliance beneficial to both Muslims and non Muslims

    Kari said attempts by the Commission and insurance operators to penetrate markets in the northern part of the country with the conventional insurance products have  not yielded the much result due to a number of challenges arising from public apathy to insurance, religious and cultural beliefs.

    He stressed that the compulsory classes of insurance made mandatory by the law for every Nigerian to undertake are still being resisted by both government and people, especially in the northern part of the country due to the challenges earlier mentioned.

    He disclosed that in recognition of the public apathy to insurance, the Commission, in line with the desire to deepen insurance penetration in the country, developed a medium-term initiative code-named: Market Development and Restructuring Initiative (MDRI), to amongst others, promote public understanding and confidence in the insurance industry.

    The initiative, he said, was also aimed at creating awareness of certain vital insurance policies made compulsory by law for the protection of innocent third parties.

    He said:“Such compulsory insurances included motor third party, group life, professional indemnity, builders’ occupiers’ liability and public building liability insurance policies.”

    While certain level of success is being achieved gradually in this regard, the Commission introduced Takaful and Micro-insurance products in the country as an attempt to reach the segment of the market that was either hitherto reached or not comfortable with the conventional insurance products.

    The Emir of Kano, Alhaji Muhammadu Sanusi II, who was at the event, said Islamic compliance insurance scheme serves as an alternative to conventional insurance in the country.

    He said:“Islamic insurance also known as Takaful is a unique Islamic concept of Sharia compliance insurance beneficial to both Muslims and non-Musllims.

    The Royal Father also stated that the system of Takaful insurance is based on the concept of social solidarity, cooperation and mutual indemnification of losses of members.

  • PTAD: 13,150 Customs, Immigration, other pensioners on payroll

    The Pension Transitional Arrangement Directorate (PTAD) has a record of over 13,150 verified pensioners and Next of Kins (NOKs) from the para – military services of Customs, Immigration and Prisons on its database, Executive Secretary, Sharon Ikeazor, has said.

    Mrs Ikeazor, who made this known in a statement to journalists, said the directorate has also paid all the pension increases including 33 per cent to all its pensioners except those who are not on the payroll, some NOKs and a few isolated cases.

    She stated that the pensioners are under the management of the Customs Immigration and Prisons Pension Department (CIPPD) of the Directorate and also under the Defined Benefit  Scheme (DBS).

    She noted that the Customs Immigration and Prisons Pension Department was first established by Decree 75 of 1993 as Customs Immigration and Prisons Pension Office (CIPPO) with the primary objective of managing pension funds for the benefit of retirees from the para – military services of Customs, Immigration and Prisons.

    She said  it was merged into PTAD in August 2013.

    She said: ‘’The responsibility of pension payment to retired officers was previously carried out by Office of Establishment and Pensions which is now known as the Office of the Head of the Civil Service of the Federation (OHCSF). However, in the year 1991, the police and para-military pension offices were created, leaving out only the civil service pensions to be handled by the OHCSF.

    “The office started operations in the year 1990 and was saddled with the responsibility of payment of retirement benefits i.e. gratuity and monthly pension to the officers who retired from the three services of Customs, Immigration & Prisons. The office was also responsible for the computation and payment of death benefits to Next of Kin (NOK) of officers who died while in service and for those officers who died after retirement but could not access their retirement benefits.”

    She pointed out that those officers who retired from the three services of Customs, Immigration & Prisons before the creation of CIPPO were later transferred from the OHCSF to CIPPO in 2004 and they are called Pre 91 pensioners.

    “CIPPO was merged with the Pension Transitional Arrangement Directorate (PTAD) in August 2013, and its responsibilities are now being handled by Customs, Immigration & Prisons Pensions Department (CIPPD).

    “CIPPD is responsible for the pension administration of the three para-military services – Customs, Immigrations and Prisons. The main objective of the department is to manage pension funds and ensure the timely payment of pensioner’s entitlement, stress – less dispensation of pension services to retirees from the paramilitary services and maintain fairness and integrity in the dispensation of pension related matters.

    “The department is headed by a director and divided into two main divisions namely,  Pension Accounts and Pension Administration. The Admin division is responsible for all administrative matters, pension complaints and pension records management; while accounts division is responsible for the department’s finances and pension payments. The department has an internal auditor who is tasked with the responsibility of checking all its operations and payments”.

    She explained that there are different categories of pensioners under the department.

    “The categories are Pre 1991, Ex Biafra Pardonees, S5 NOK and 56 NOK.. The Pre 1991 are pensioners that retired before the creation of the erstwhile CIPPO.  Some retired voluntarily on attaining 60 years of age or after 35 years of service. Post 1991 are pensioners that retired statutorily, voluntarily, involuntarily or compulsorily retired/downsized from 1991 to June 2007 who fall under PTADs mandate.

    “Ex Biafra Pardonees are the para-military officers who joined the Biafran Army during the civil war but were pardoned and granted amnesty by President Olusegun  Obasanjo in May 2000;S5 NOK are the NOK of officers who died a natural death.

    Speaking further she said:‘’There are two categories – for death while in service, the registered NOKs will be paid the gratuity and five years dependable benefit. However, if the death occurred after retirement, the registered NOKs will be paid the balance of the unpaid pension totaling five years post retirement; and S6 NOK are the NOK of officers who died in the course of duty while in active service. Here, the widow and up to six children up to the age of 18 will be entitled to monthly pensions and once they attain the age of 18 years the pension payment stops.’’.

  • Pension complaints and solutions

    ANONYMOUS: Good day sir|ma. Please as a contract staff who retired with an existing pin from his PFA and currently on pension, can I register with another PFA as a contract staff? God bless PenCom and The Nation for this good work.

    PENCOM: The Pension Reform Act (PRA 2014) emphasises one Retirement Savings Account (RSA) per employee, which means that RSA holders should not register with any other PFA after the first registration.  The National Pension Commission (PenCom) has a first pin rule, which means that contributors with more than one PIN must notify the Commission in writing attaching evidence of multiple registrations with PFAs, so that the subsequent PINs can be flagged off.  An RSA holder carries his/her PIN to his/her new employment. The contributor does not have to change his PIN or register with another PFA.

    ANONYMOUS: Good dayam sir, I am  a staff of PPEB Delta State.  I started contributory pension from inception. I opted for Stanbic Ibtc Pension. However I was told I can’t choose my pen managers myself contrary to the law, that another PFA (name withhold) must manage all Delta workers.  I filled the forms, till date I have nothing to show for it.

    PENCOM: By virtue of the provision of the Pension Reform Act 2014, an employee enjoys the right to open and maintain an RSA in his name with a PFA of his choice. It is illegal for any employer or Labour/Union to impose a particular PFA on employees or members.  However, we will still need more information from you such as your PIN, name of PFA, name of your last employer in order to assist with your enquiry.

    GEOFREY: Good evening sir. I am Geofrey, an ex staff of Oceanic Bank, I opened my RSA is with premium pension, after my disengagement, I went to their office to get 50% of contribution. But among other requirements they asked for my salary pay slip which I cannot get because Oceanic Bank didn’t pay us with  pay slip when I was with them. Please help me as I am yet to get another job since 2010. Thanks.

    PENCOM: You cannot get 50% of your contribution. The PRA 2014 only makes provision for a person to withdraw not more than 25% of the total amount credited to his/her RSA provided his/her have been out of a job for four months and has not secured another employment.  With regards to your pay slip issue, please contact your PFA so that they can assist you with possible alternatives.

    BASAMBO: Good day. My name is Basambo, I have death benefit payment of my late father, Danjuma with  Legacy Pension. Please I need to know why the payment is not being made for two years, after finishing all the neccessary processes.

    PENCOM: Upon the death of an employee, the employer/Next of Kin (NoK) or representative of the deceased shall notify the PFA, who in turn shall inform the ommission with supporting documents. The employer would thereafter process the proceeds of the life insurance policy which shall be credited into the deceased’s RSA. The NoK shall liaise with the PFA and provide necessary documentation for processing of the deceased’s entitlements. The deceased’s consolidated benefits are thereafter paid in bulk to the Executors of his estate or to any person appointed by the Probate Registry as the Administrator of his estate to enable them apply the same in favour of his beneficiaries. However sir, we would require more information from you such as your late father’s PIN, Name of Last Employer, so that we can assist you further.

    MRS EKPE: Good day ma, please I need your help on my late husband’s pension. My problem is on the letter of administration. I have been processing it since December 2014.The lawyer helping me only collects money from me and put me on hold, he doesn’t even take my calls

    PENCOM:: Please madam, try and engage another lawyer to assist you.

  • Insurer Fajemirokun to be honoured

    Doyen of Insurance and industrialist, Chief Oladele Fajemirokun will on Friday be installed as Baba Oba Ifewara, Osun State.

    Oba Ifewara, Hezekiah Owolola in an interview with journalists, said Chief Fajemirokun was chosen as Baba Oba based on his antecedents in developing the people around him.

    He said they expect the industrialist to bring institutions, factories and create employment in the community.

    He said Ifewara, an offshoot of Ile-Ife, needs to develop and he wants to develop the town than how he met it.

    The Oba also said he choose Fajemirokun to mark his 40th anniversary on the throne, adding that his father late Chief Henry Fajemirokun played a pivotal role in his life when he ascended the throne.

    He said: “I deem the industrialist a blessing because as a business man, he can influence investors into the town. This will ultimately bring employment opportunities for our youths when they graduate from school.

    “Ifewara is very close to Ile-Ife and Ilesa. The meaning and significance of Baba Oba Ifewara is huge. Chief Fajemirokun is my blood and he is older than me. He will be my adviser in order for me not to derail.”

    Chief Fajemirokun on his part said he accepted the title because he said it is a homecoming for him and he is doing it for his generation.

    He believes that he can contribute his quota to the development of his people and the country at large.

    Commenting on the development, Chairman, AIICO Insurance, Bukola Oluwadiya said Chief Fajemirokun is deserving of the title, noting that he is a good man.

    He said that Fajemirokun will promote projects that will benefit the community as he is favorably disposed to favouring and helping people around him.

  • NCRIB President: Insurance penalties, fines killing

    NCRIB President: Insurance penalties, fines killing

    •Bows out next week

    The flurry of penalties and fines being levied on brokers two years ago was killing and disincentive to our business, outgoing President of the Nigerian Council of Registered Insurance Brokers (NCRIB), Kayode Okunoren, has said.

    Okunoren made this known during his Valedictory Press briefing at the NCRIB House, Yaba, Lagos.

    He said the Council, under his tenure, was able to seek concession for members with the regulatory authorities, especially NAICOM and the Financial Reporting Council (FRC) through constructive dialogue.

    He said they have surmounted almost all the obstacles and further positioned the Council on a pedestal of greater respect and reckoning in the comity of other professionals in Nigeria.

    He said: “Although it was not a bed of roses, yet the Council recorded some modest feats in the last two years. We were able to also add value to members. It is a pride for any member to belong to the NCRIB, because of the added value members are getting from the Council. Through this value addition we have been able to douse the negative views and a flurry of ill feelings that were the lot of many members about two years ago. We have given value in terms of training and information sharing, leading to facilitation of business through public bids.

    “We have further the frontiers of relationships with international insurance bodies, especially BIBA and the African Insurance Forum (AIF) with the consequential benefits in form of better training and exposure for members. We have realized that for the industry to continue to be relevant, its members must continually learn and unlearn and have the required exposure to deliver value to their clients.

    “Our image has also been boosted  with our corporate visibility project during the period. We realized the need to inch up the image of brokers and pull down several noxious beliefs about their practice. Today, the corporate visibility project has been warmly received by all members and through it the corporate reputation of the Council and its members have been improved significantly”, he added.

  • ‘94.4% of adults have no insurance cover’

    ‘94.4% of adults have no insurance cover’

    About 94.4 per cent of the country’s adults have no form of insurance, the National Insurance Commission (NAICOM), has said.

    The Commission, citing the 2016 EFInA research findings, said insurance uptake of the adult population remains low at 1.9 per cent.

    This means that only about two million of the adult population have one form of insurance or the other.

    Speaking at the just concluded 2017 Annual Seminar for Insurance Correspondents organised by NAICOM in Kaduna, Kaduna State, Commissioner for Insurance, Mohammed Kari said there has been challenges and barriers hindering insurance penetration in the country.

    Stating reasons behind the low insurance uptake, he said the distance of the insurance providers to the rural areas or the unreached is a common challenge.

    He pointed out that most companies are based in the city pursing corporate and government accounts.

    In a paper presented by NAICOM Director, Authorisation and Policy, Agboola Pius, a large population of adults are financially excluded.

    He said while 58.4 per cent are financially served, 41.6 per cent representing, 40.1 million adult are financially excluded.

    Quoting the 2016 EFInA research findings, he added that banked population is 38.3 per cent, representing 38.9 million.

    He stressed that while 14.9 per cent said they have nothing to insure, 10.1 per cent said they have no reason to insure.

    He said out of those who do not believe in insurance, 12.2 per cent do not know the benefit of having one while 6.8 per cent believe insurers do not settle claims.

    But some, he said, cannot afford to pay for insurance. In this category, 10.8 per cent do not know where to go to get one and three per cent believe God will take care of what they would need to take a cover.

    He said apart from distance which is a challenge to getting many people insured, there is also the issue of inappropriate products, insurance distribution, low income and unreached customers; low awareness, and inadequate services and deployment of inappropriate technology or no technology at all.

    On initiatives needed towards enhancing insurance access to the unreached, Agboola noted that there was need for the transformation of the informal and quasi–informal group into a formal group through appropriate distribution channels.

    He said: “There must be appropriate and sustainable distribution channels that recognise these groups as necessary. The regulator (NAICOM), having noted these gaps and has started developing appropriate framework and guidelines in many areas such as NGO/Community Based/Trade Associations; Microfinance Banks; independent agents, among others. The Commission has exposed few of the Guidelines.

    “Other initiative needed is minimum documentation and Know Your Customer (KYC) requirement; collaboration between the regulator and state governments and other Federal Government agencies; innovative and appropriate technology; and co-ordinated insurance consumer awareness and education.