The Nation Newspaper

Category: Insurance

  • Dana Air crash: Ground victims to reject compensation

    Dana Air crash: Ground victims to reject compensation

    Ground victims of the Dana Air crash are set for a showdown over the alleged payment of compensation by Dana Air and its insurer, Prestige Assurance Plc.

    A lawyer to one of the ground victims, Pastor Daniel Omowunmi, owner of the property, which the ill-fated plane crashed into, confirmed to The Nation that Dana Air offered them a cheque, but that he would reject it because the amount on it was ridiculous. He, however, did not give the figure.

    The lawyer, Olumide of the Dele Adeshina Chambers, said the offer was far below what their surveyors, Osas and Oseji, recommended for payment.

    Also, Chukwuemeka, a lawyer to Mr Iloka, said he has not received any offer from the underwriter.

    He said despite the meeting he had with the Dana Air officials and promises by them to pay, he was surprised to hear that the underwriter offered cheques to ground victims and he had not received any for his cllient.

    He, however, said he would sue the airline for a breach, adding that he did not go to court earlier, because he felt the claims would be settled.

    Last week, Prestige Assurance Plc, the lead insurer of the Dana Air, announced on behalf of its co-insurers, that it had handed over cheques to some owners of property destroyed during the incident.

    The Managing Director of the company, Mr Prakash Mittal, said these include those who were certified and forwarded to them by their legal firm.

    Mittal said: “On behalf of other co-insurers, the company wishes to assure families of victims of the air disaster that the insurance companies will pay compensations to all beneficiaries once their documentations are certified genuine and okay for payment by the competent authority.

    “It is on record that over 101 deceased passengers’ families’cheques/fund transfer certificates have been released to the solicitors for the initial liability payment of $30,000 while about 24 of them have been able to provide the required Letters of Administration and their cheques for the balance of USD70,000 each, as final payment have also been handed over to the firm of solicitors to enable them to hand over same to appointed administrators of the deceased passengers’ estate, after  finalisation of the legal processes involved.

    “In addition to this, we have also handed over the cheques for some of the third party property on ground which were certified and forwarded to us by the legal firm,” he said.

    He assured that the insurance companies working with the relevant government agencies would continue to work round the clock to ensure the processing and payment of these claims and compensations once proper documentation is done.

    Pastor Omowunmi said the crash into his property, which served as his business and residential building, has kept him out of job and means of livelihood, thereby making it difficult for him to cater for his himself and his family.

    He said: “Before the unfortunate incident, I had a warehouse with goods worth N300million while my building and fish pond, among other properties, worth N200million. What I received from them is $30,000 initial payment, which I used to get an accommodation. I lost four structures to that site.

  • ‘Nigeria has only 3,500 insurance professionals’

    Nigeria has only 3,500 insurance professionals out of a population of over 160 million, the new President of the Chartered Insurance Institute of Nigeria Mr Fatai Lawal has said.

    Describing the figure has poor, Lawal said the only way the industry can get insurance to penetrate every nook and cranny of the country is to get more people involved as crusaders and vanguards.

    Lawal, who made known his agenda in Lagos spoke on Promoting insurance education in Nigeria.

    He said the industry can only create the necessary awareness when people are educated on the subject.

    According to him, the less than optimal financial literacy in Nigeria is at the cause of poor patronage of financial services, adding that insurance is one of the most affected in the sector.

    On his agenda, he said: “During my tenure, we shall focus attention on the empowerment of selected institutions offering insurance programmes to enhance their capacity to offer quality education and reinforcement of activities at the College of Insurance and Financial Management.

    Others, he said, include: “Strengthening the professional qualification of the institute for global relevance, completion of the restructuring of the institute’s secretariat to enhance its service delivery, greater attention to funding and prudent management of the institute’s resources, resolution of the Victoria Island Building Project and promotion of the Insurance Industry Consultative Forum.

    He explained that there would be efforts at expanding the capacity of institutions offering insurance.

    “These institutions will be accredited by the CIIN based on their capacity to deliver quality insurance education. The institute will support these institutions in books, infrastructure, scholarship, and exposure to international seminars to ensure access to latest information about insurance.

    “Luckily, in recent time, the Federal Government has approved insurance as a subject in secondary schools. The institute will provide the necessary support for the Ministry of Education to actualise the scheme one of which will be in the area of production of text books for this course and provision of training facilities for insurance teachers.

    Lawal stressed that the professional examination of the institute is the hallmark of its activities.

    He further said the institute has conducted the examination over the years, producing associates and fellows that are unquestionable in skills and character.

    He noted that the institute needs to move a step further by ensuring that its associates could trade their certificates for the well-known Associateship Diploma of the Chartered Insurance Institute of London, even if it means just writing one paper, adding the on-going discussions with the CII London would be pursued to a logical end.

    “It would interest you to know that CIIN is the only professional body conducting insurance examinations in the whole of Africa except South Africa. We should be a centre that others can log on to. Because we had always thought that our certificate is needed only in Nigeria, we have not been able to explore this viable option and a gaping opportunity to expand our horizon.

    “The point also needs to be made that because of globalisation, the institute should be able to give its qualifiers the freedom to move around anywhere in the world and, I think this is good for every professional with his or her bidding.

  • AIICO offers discounted rates at summer

    AIICO offers discounted rates at summer

    With summer season at its peak, AIICO Insurance Plc is offering discounted rates to the public on its travel insurance policy.

    Managing Director, AIICO, David Sobanjo, who made this known to reporters in Lagos, said this is in line with the company’s determination to ensure that Nigerians are protected whenever they travel outside the country.

    According to him, the policy, which is called AIICO Travel insurance, is designed to give cover to policyholders should the need arise for emergency medical expenses, repatriation and evacuation during international trips.

    He said the people would enjoy discounted rates on family and group travels with benefits such as family and personal health cover while on international trip.

    The policyholder would also be entitled to emergency evacuation from foreign land, medical repatriation, funeral expenses, medical emergency and 24-hour call center service and assistance.

    He assured that their claims would be paid promptly whenever the need arises, pointing out that as a testimony, the insurance firm paid claims totalling N6.3billion to its clients last year.

    He said the focus of the firm is the prompt settlement of genuine claims and that this will continue to be the philosophy of the company.

    He also said the insurance company is conscious of the need to ensure that its customers are satisfied, adding that it is the only way to build customer loyalty.

    The company’s determination to meet and surpass the expectation of its customers informed its decision to call on the public who have unclaimed benefits with the organisation to collect them.

    The insurance firm boss explained that its decision to pay benefits that due to policyholders or their dependants, but have not been claimed, was in keeping faith with its promise to make the customers enjoy the benefits of insurance.

    After operating in the country for 50 years, he said AIICO is set to render excellent services to its customers.

     

  • Micro insurance: African insurers mull ILO initiative

    The Managing Director, Custodian Life Insurance, Mr Larry Ademeso, has said insurance companies in Africa have started moves to take advantage of the International Labour Organisation (ILO) Micro Insurance Innovative Facility to develop micro insurance.

    Ademeso, who is also a member of the African Insurance Organisation (AIO) Committee, said the focus of the project being driven by the Micro Insurance Committee of the AIO, is to leverage on the facility’s experience, innovation, human resources, training, exchange, products and other supports to develop micro insurance among African countries.

    Speaking on the just concluded African Insurance Organisation (AIO) Conference in Cairo, Egypt, Ademeso said the committee members, who had some teleconferences ahead of the event, met in Cairo to review its work and set agenda for Africa that would enable it access the ILO Micro Insurance programmes.

    He said the resolution of the meeting was that some African countries were putting their houses to develop their micro insurance market. “I see Nigeria playing key role in the arrangement, given our population and the fact that our penetration level is still very insignificant,” he said.

    The Nigerian Deputy Commissioner for Insurance, Ibrahim Hassan, who was at the Committee Meeting spoke on what the National Insurance Commission (NAICOM) was doing on regulation to ensure the effective take-off of micro insurance in Nigeria, he said.

    “I can tell you that everyone at the meeting agreed that Nigeria was doing quite a lot to explore this opportunity,” Ademeso said.

    “We will continue to interact and one of the highlights of that meeting too was sharing experience among the members. So, we interacted with some of the members from more micro insurance developed markets, especially Kenya in East Africa, Zimbabwe in the Southern Africa.”

    For instance, a lady from Zimbabwe demonstrated how insurance industry in Zimbabwe have been able to sell their life insurance products through the churches, and what that tells me is that we can actually expand our distribution channels to reach more of our population’” he added.

    Based at the International Labour Organisation’s Social Finance Programme, the Microinsurance Innovation Facility seeks to increase the availability of quality insurance for developing world’s low-income families to help them guard against risk and overcome poverty.

    The facility was launched in 2008 with support from the Bill & Melinda Gates Foundation to promote the extension of better insurance to the poor. Additional funding came from several donors, including the Z Zurich Foundation and AusAID.

  • Dana crash: 24 families to get $70,000 balance, says Prestige

    CHEQUES of $70, 000 each of 24 victims’families of last year’s Dana Air crash out of 101 are ready, the underwriter Presitige Insurance has said.

    The Dana Air’s Boeing McDonnel MD-83 flight No. 992 on June 3, last year crashed in Iju-Ishaga area of Lagos State, killing all the 153 passengers and the crew on board. It destroyed properties and killed about 13 victims on ground.

    In a statement, Presitige Managing Director, Mr Arnand Prakash Mittal, said over 101 deceased passengers’ family cheques and fund transfer certificates had been released to the lawyers for the initial liability payment of $30,000.

    He also said the company has handed over the cheques for some of the third party property on ground, which were certified and forwarded to them by the legal firm.

    He noted that other co-insurers working with the relevant government agencies would continue to work round the clock to ensure the processing and payment of these claims and compensations once proper documentation is done.

    He reiterated the company’s commitment to honouring its contract to families of victims of the Dana air crash that occurred in Lagos exactly a year ago.

    In his words, “As the nation marks the first anniversary of the Dana air crash, the management of Prestige Assurance Plc, the lead insurance underwriter to Dana Air, commiserates yet again with the families of victims of the crash that occurred in Lagos exactly a year ago.

    “The company seizes the opportunity of the one year anniversary of the accident to pray God to continue to repose in the families of the deceased the fortitude to bear the loss of their loved ones.

    “Suffice it to say that as responsible risk bearers, Prestige Assurance Plc is committed to honouring its contract and, therefore, reiterates its preparedness to settle all genuine claims arising from the unfortunate incident and certified by the solicitors appointed by the lead reinsurers (overseas) as provided by the Dana aviation policy terms and condition”.

    He further said: “On behalf of other co-insurers, the company wishes to assure families of victims of the air disaster that the insurance companies will pay compensations to all beneficiaries once their documentations are certified genuine and okay for payment by the competent authority.

    “Consequently, the company solicits the cooperation and understanding of victims’ families to exercise restraint and settle their internal differences and come up with proper documentations to enable settlement of their claims without further delay.

    “It is on record that over 101 deceased passengers’ families’ cheques/fund transfer certificates have been released to the solicitors for the initial liability payment of $30,000, while about 24 of them have been able to provide the required Letters of Administration and their cheques for the balance of $70,000.00 each, as final payment have also been handed over to the firm of solicitors to enable them hand over same to appointed administrators of the deceased passengers’ estate, after  finalisation of the legal processes involved. In addition to this, we have also handed over the cheques for some of the third party property on ground which were certified and forwarded to us by the legal firm”.

  • ‘Insurance panacea for nation’s growth’

    Insurance plays a critical role in an economy’s savings for productive investment and growth, an octogenarian and industrial giant, Deacon Gamaliel Onosode, has said.

    He spoke at the yearly International Education Conference of the Chartered Insurance Institute of Nigeria (CIIN) in Lagos.

    He said the insured, insurer and the nation would be better off if lives and properties are insured.

    The event has as theme: The nation in transformation: Repositioning the insurance industry.

    He called on the public to take advantage of insurance, urging insurers to ensure prompt payment of claims.

    If this is done, he said, insurance business would prosper while the nation would also gain from boost.

    Onosode, who was the Special Guest of Honour at the event, called on insurers to embrace discipline, adding that for an organisation to grow, there should be commitment to discipline.

    Prof. Pat Utomi, Founder and Chief Executive Officer (CEO) Centre for Values in Leadership (CVL), said using pooled risks to reduce uncertainties should be a major role insurers must play in the nation’s transformation.

    Speaking on the topic, Leadership and strategy governance challenges in a transforming economy, he said insurers should also play the role of developing venture capital in its investment and engage in risk and capital formation in the long term.

    He called on insurers to be more proactive and rise to the challenge of questioning whatever seems inimical to growth and development.

    Utomi said Nigeria has the potential to become great in the comity of nations if people contribute their best to it.

    Chairman, First Bank Capital, Mrs Ibukun Awosika, called on insurers to fashion new products that could support industries.

    Outgoing President of the institute, Dr. Wole Adetimehin, pointed out that Nigeria’s transformation is evidenced by activities in both public and private operations in the economy.

    He, however, noted that the conference contemplated the challenges of transforming financial services equation, with emphasis on issues in the financial and regulatory intermediation by the regulatory bodies such as the Central Bank of Nigeria (CBN) and the National Insurance Commission.

    He added that the conference’s theme was borne out of the institute’s commitment to the provision of platforms for continuous professional education and the need to engage its members in constructive revaluation of the business environment.

    “As professionals, our contributions to nation-building cannot be overemphasised. The on-going transformation process which our nation is passing through represents the most critical phase of nationhood and therefore requires our collective support as Insurance professionals, especially at a time when the most challenging and unprecedented developments continue to threaten our co-existence as citizens of one nation,” he said.

     

  • Five years after, enforcement of compulsory insurance shaky

    About five years into the implementation of five major compulsory insurance in the country by the regulatory authority, the National Insurance Commission’s (NAICOM) enforcement seems shaky.

    The compulsory insurance was introduced by the commission through its Market Development Initiative (MDRI) programme and made compulsory by law by the Insurance Act 2003 and other sister legislations.

    They include Group Life Insurance in line with the PenCom Act 2004; Motor Third party Insurance covered by Section 68 of the Insurance Act 2003; Buildings under Construction covered by Section 64 of the Insurance Act 2003; Occupiers Liability insurance covered by section 65 of the Insurance Act 2003 and Health Care Professional Indemnity Insurance under Section 45 of the NHIS Act 1999.

    The MDRI project, according to the Commissioner for Insurance, Mr Fola Daniel, is designed to be a medium-term project that would install the first phase of reforms in the areas of industry capacity, market efficiency and consumer protection in the country, adding that the project would be effective between 2009 and 2012.

    Daniel also said it is expected to expand the industry to generate a projected income of N1trillion gross premium last year, a figure he said is capable of significant contribution to the nation’s Gross Domestic Product (GDP).

    But, as at end of last year out of the projected N1trillion through the MDRI, only about N200million was generated.

    NAICOM appears to be suffering a major setback in enforcing the law against erring members of the public as it was discovered that the commission lacked the enforcement power like the National Pension Commission (PenCom) to carry out necessary actions following enforcement take-off plan which began in September 2011.

    Offenders in this case will be vehicle owners, landlords, builders and doctors, who do not have the necessary insurance to protect third party’s lives and properties.

    The Commission in 2011 began enforcing the law with a combined team of the Police, Federal Road Safety Commision (FRSC), Fire Service officers, the Insurance Consumers Association of Nigeria and NAICOM officials. At present, none of these officials were on ground to arrest and enforce these laws against erring persons.

    Investigations by The Nation reveal that many landlords are not aware of the Occupiers Liability insurance or Buildings under Construction insurance while some are non-chalant.

    A landlord in Lagos, Alhaji Wasiu Oladele, who does not want his address stated, simply said he has heard about the law, but he does not have it.

    Another landlord, who also spoke on condition of anonymity, said he was not aware of the law and as such did not insure his property.

    Head, Corporate Affairs of NAICOM, Rasaaq Salami, told The Nation explained the commission’s challenges and constraints.

    He said: “Enforcement is not only when you go out to raid people and arrest them but having the powers to execute the law.

    “If you go and arrest and you don’t have the powers to execute, the police cannot detain them for more than 48 hours before they are released.”

    Salami, however, disclosed that the commission was working on guidelines that would address the challenges.

    Leadway Assurance Ms. Adetoun Adetona said the implementation and enforcement lie with the government at state and federal levels while insurers can only build awareness.

    She pointed out that the motor insurance, which is an initiative of the Nigeria Insurers Association (NIA), is making progress, noting that builders’ liability is suppose to be supported by the Fire Service in terms of enforcement.

    “While NIA is working on the NIID—for the success of the motor insurance, we expect the Fire Service to enforce builders’ liability effectively because the police cannot be going into buildings to inspect if they have the necessary insurances.

    “There is need for the industry to engage the Fire Services to enforce the law on building liability just like the NIA that is taking care of third party motor insurance”, she said.

  • Six states comply with Contributory Pension Scheme

    Six states comply with Contributory Pension Scheme

    Six states – Lagos, Ogun, Delta, Kaduna, Niger and Jigawa- have fully complied with the Contributory Pension Scheme (CPS).

    This means that they have maintained life insurance in favour of their employees for a minimum of three times their yearly total emolument as contained in section 9 (3) of the Pension Reform Act, 2004.

    While six other states have their own pension arrangements for their employees, 24 states are yet to have any pension arrangement for their workers.

    President of Pension Fund Operators Association of Nigeria (PENOP), Dave Uduanu, who made this known at a media parley in Lagos, said the National Pension Commission (PenCom) and the association are worried by this trend and have devised measures to enlighten the non-compliant states to key into the scheme.

    He, however, said operators were sensitive about the management of the fund.

    According to him, the scheme is young but growing, making its safety critical in meeting its key objectives, which is to ensure that workers (contributors) have access to their funds at retirement.

    Uduanu said this was why operators were wary of where to invest, despite pressures from all corners, that pension funds should be used to develop projects such as infrastructure.

    He said: “We have quite a lot of investment windows approved for us by our regulator, but still, we are buyers of securities, we are buyers of investment instruments and not a charity organisation that would repair roads and electricity.

    “If roads are to be built for tolls, or other liquid investments, where we are sure that retirees’ funds are safe we can be part of it.”

    Chief Executive officer, Stanbic IBTC Pension Managers Limited, Demola Sogunle, while speaking on regulation of the industry disabused the minds of many who continue to say that the industry is over regulated.

    He said: “We cannot be talking about over-regulation in a young industry that has to do with contributors’ emotions, an industry that is about retirees’ vulnerability.

    “It is important that the industry is properly established for safety of the funds.”

    He added that there would be guidelines from time to time, to define codes, ethics and conduct of the operators.

    Managing Director, Legacy Pension Managers Limited, Misbahu Yola, said the accounts of PFAs are International Financial Reporting Standard (IFRS) compliant in line with the deadline set by PenCom.

    He said: “On International Financial Reporting Standard (IFRS), the compliance deadline for all operators was December 31, 2012. A number of our results are already out, which are in compliance with the IFRS. We have all complied.”

    The Federal Government had informed operators in the economy that IFRS will be the new basis of financial reporting with effect from January last year.

    The adoption of IFRS would likely result in high quality, transparent and comparable financial statements based on internationally accepted modern accounting principles and concepts.

    IFRS are principles-based standards, interpretations and framework adopted by the International Accounting Standards Board (IASB). Its overall objective is to create a sound foundation for future accounting standards that are principles-based, internally consistent and internationally converged.

  • SA Life begins awareness programme

    SA Life begins awareness programme

    TO deepen insurance in the country, Standard Alliance Life Assurance Limited, said it has partnered with Almond Finance and Wealth Report to enlighten the public on the need for insurance.

    Head of Corporate Communications, Mr Nelson Egboboh, in a statement, noted that the company has picked the challenge of sponsoring enlighnten-ment programme on the electronic media one of which is anchored by Almond Finance and Wealth Report on a local channel.

    He said the underwriting firm also went ahead to sponsor more programmes, which is aired on both local and international channels.

    He added: “A situation where below two per cent of 160 million Nigerians subscribe to insurance is discouraging and unacceptable.” He said: “This is why programmes of this nature must be supported by insurance companies to help Nigerians come to grasp with the value of insurance in their lives and businesses.”

    “We, at Standard Alliance Life Assurance, are concerned about making Nigerians across the different class divides know much about insurance and its important place in their lives,

    “We also believe that Nigeria with such a huge population ought to be the biggest market for insurers in Africa if only the people are fully aware of what they stand to benefit from subscribing to any applicable form of insurance.”

    Egboboh explained that the desire of the company is to ensure that no losses are suffered by Nigerians and the need to enlighten the public on the crucial role of insurance.

     

    plays in the economic stability of any nation informed the organisation’s decision to throw its weight behind the insurance awareness deepening television programme.

  • Fatai Lawal is CIIN President

    Fatai Lawal is CIIN President

    THE Chartered Insurance Institute of Nigeria (CIIN) will on Friday swear in Mr Fatai Kayode Lawal as its President and Chairman of Council.

    Lawal, who is also the Managing Director of Sterling Assurance Limited, will become the 45th President of the 54-year-old institute.

    Chairman, CIIN Presidential Investiture Committee, Adeyemo Adejumo, who announced the preparations for the event in Lagos, said: “The focus of the incoming president will begin from where the outgoing president has stopped; that is to improve on the level of education for the insurance industry in Nigeria, strengthen the examination system for measuring skills. We have mapped out strategies where we can take this education not only within the industry but all over the country to the higher institutions, secondary and primary schools.’’

    He said they would enlighten every Nigerian on the benefits of insurance, noting that this, among others, would be the principal focus for the industry.

    Outgoing President, Dr Wole Adetimehin, in his farewell address, said the lofty goals set on assumption of his Presidency in June, 2011 have been substantially fulfilled.

    He said the College of Insurance and Financial Management is almost completed and that it would move to its permanent site in the next few months.

    He said: ”Lofty goals set on assumption of this Presidency have been substantially fulfilled. These were hinged on the theme, “Repositioning the insurance profession”, and included, strengthening the relevance of insurance profession in Nigeria, enhancing the quality of insurance education in Nigeria, recognition of excellence in insurance awareness and public enlightenment.

    “The first significant step taken by the governing council in this direction was the constitution of a formidable industry team which, examined the issues related to the national budget and arrived at useful decisions, which brought to the fore the opportunities for economic growth and, in particular, the expectations from the insurance sector.’’

    He added: “We have also continually canvassed the need for a genuine national consciousness on the efficacy of insurance, especially with the spate of insecurity and the wanton destruction of lives and property as a result of growing insurgency as well as natural disasters such as floods and storms.’’

    As the industry’s educational arm, we have also initiated suitable and relevant training programmes aimed at equipping practitioners with the necessary tools for underwriting the emerging risk exposures such as kidnapping and terrorism. We are also gearing up at promoting the development of pool formations, which can contain these catastrophic risks and guarantee greater confidence from the insuring public’”

    Lawal joined the governing council in 2001. Born on October 6, 1960, he is a Fellow of the institute.

    Mr Akintola Williams, a chartered accountant will be the chairman while special guests of honors are Abdulfatah Ahmed, Governor of Kwara State; Babatunde Raji Fashola, Governor of Lagos State, and Oba Rilwan Akiolu, Oba of Lagos.