The Nation Newspaper

Category: Business

  • Dana Air: ‘Victims’ families can get over $100,000’

    Dana Air: ‘Victims’ families can get over $100,000’

    Families of victims of the Dana Air crash of last year in which 153 passengers died could get more than the minimum compensation, if they can establish reasons for such, the Deputy General Manager , Special Risk, Mutual Assurance Plc, Mr Kehinde Bello, has said.

    Though the International Civil Aviation Organisation (ICAO) set the minimum compensation of at least $100,000 per passenger, there is no limit for the residents of the Iju/Ishaga, whose properties were destroyed.

    Qualification for the compensation claim above the prescribed international standards would depend on the claim by the relatives of the victims to the airline and insurers beyond doubt that they qualify to collect a compensation regime above the threshold.

    This is coming at a time the Nigeria Civil Aviation Authority (NCAA) has set a two-month deadline for Dana Air and its insurance firm to settle the balance to relatives of victims who died in the crash.

    Bello said with proof, the families of the victims could press for more cash.

    He said: “To facilitate prompt payment of claims in the event of an accident, as in the case of Dana Air, the insurance company and the carrier can collaborate to fast-track the payment.

    “Airlines are required by law to have statutory cover. But, when there is a crash, the family of relatives could ask for compensation beyond the prescribed limit of compensation of N100,000, if they can show beyond reasonable doubt that the victim is worth more than the amount allowed as minimum limit.”

    He said this could be achieved depending on the statutory template established by the Nigeria Civil Aviation Authority(NCAA), to ensure that the compensation is paid.

    He called for standard documentation by the airline and insurance.

    He said once there is proof that a passenger was on board any crashed aircraft, there must be a standard guideline to be followed to ensure that no claimant is denied payment of compensation.

    The insurance expert explained that there should be flexibility in the processes that lead to the payment of compensation by all claimant, provided all parties involved have understanding.

    He said: ”There must be cooperation between the airline and the insurance company to ensure that ground casualty are covered by the third party liability. All the owners of such property needs to do is to submit a claim to the airline for compensation.

    ”But it does not end there, the insurance company on its part must establish the real value of the claim. They will have to examine the value of the property by inviting an adjuster to ascertain whether the property owner has not inflated figures in the claim. The rationale behind this is to ensure that the property owner does not make profit from the loss of the property.”

    Also speaking, the Director-General of NCAA, Dr. Harold Demuren, affirmed that there is no limit to the liability of claims by those affected on the ground.

    He said : “ Insurance is one of the no go items as far as aviation is concerned. This is because there are global laws that prescribe that nobody can operate an aircraft in scheduled commercial category without an insurance cover.

     

     

     

     

  • Enterprise Bank chief advocates discipline, good management

    HIGH moral values, efficient management, service discipline and cultural change in the public and private sectors of the economy are keys for growth, the Chief Executive Officer, Enterprise Bank Limited (EBL), Mallam Ahmed Kuru.

    He spoke at the 28th Omolayole Management Lecture at the Nigerian Institute of International Affairs (NIIA).

    It has as theme “The future of enterprise in the age of collaboration”.

    He said though it takes a lot of hard work and commitment to achieve these virtues collectively and individually, there was no better value the leaders can bequeathe to the younger generation in the country than to leave them with good legacies.

    He said countries that have experienced and are still going through impressive economic, social and political growths, transparent and sincere leadership styles as well as high moral standards are those that realised that low moralism, poor knowledge, bad leadership or management structures, indiscipline and poor service standards, among other vices, are not the bedrock for building a stable and programme economy.

    He added that there was urgent need to positively collaborate with other nations with the view to leveraging their advantages and approaching every endeavour from the perspective of enterprise, which he defined as the ability to think of new project ideas and turn them into successful ventures.

    The Enterprise Bank boss added, “The primary purpose of establishing an enterprise in the first place is to create value through the production of goods or services that satisfy both domestic consumption and export earnings”.

     

  • Unhealthy competition worries insurers

    Stakeholders are worried that unhealthy competition in the industry may get worse this year, especially with the introduction of the ‘no premium no cover’ policy by the National Insurance Commission (NAICOM).

    Chairman, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, said the policy would create a ‘rat race’ among firms.

    He said insurance companies would find a way to retain their customers, whether premiums are paid immediately.

    “What is most likely going to happen is that, if one insurance company does not take the client and finds a way to do business with them, another company will do it,” saying the major problem that confronted insurance firms in the past had been the issue of undercutting each other and this is going to continue.

    ”There is no way NAICOM will be able to catch all those destroying the sector because they will do it in such a way that there will be no evidence to show,” he said.

    The Managing Director, Riskguard-Africa Nigeria Limited Mr Yemi Soladoye, said unless insurance operators adopt cost effective and non-volatile distribution channels, unhealthy competition would get worse.

    He said most problems in the industry are caused by operators’ refusal to adopt retail strategy as a business policy, adding that one way to get out of the problem is for firms to adopt retail marketing.

    He said operators tackle the unhealthy competition because they have boxed themselves into a narrow distribution outlet – the brokering market – adding that in such a situation, price becomes the only strategy.

    He noted that clients are asking for reduced price because they are yet to see any strategy from the operators, saying insurance companies concentrate on premium growth instead of market expansion.

    “The future and the solidity of the operators can only come from market expansion and not competing for the few available channels.

    “Unhealthy competition will get worse, until they look for better, cost effective and non-volatile distribution channels,” he said.

    According to the Riskguard chief, retail marketing strategies means that insurance firms can identify organisations they can partner with to reach the target market.

    “Bankassurance, which is collaborating with banks, is a retail channel. It also means engaging in alliances with organisations, such as Shoprite, Megaplaza and others, which are working with cooperative societies.

    He said though the channels are there, the market will not expand except they are adopted.

    ”There’s no alternative; it is compulsory, for they are feeling the bite of the narrow distribution outlet that they are using at the moment.

    “Most of the problems they face, which include high cost of doing business, premium reduction, unhealthy competition, are manifestations of the fact that they are using narrow distribution method. If you have an alternative, you would be able to do business on your own terms, but when you do not have alternatives, you have to achieve what ever any body tells you. That is the problem with the operators for they are not creating alternative distribution outlets for themselves,” he added.

    He urged insurers to return to the drawing board to examine their operations, adding that each company needs to sit and draw strategy on how to develop its business and adopt retail marketing strategy and that when this is done, issues of unhealthy competition, premium reduction and others will stop.

     

  • FBN Capital floats mutual funds

    FBN Capital Limited through its Asset Management arm has inaugurated mutual fund products to enable it to enhance investors more get returns.

    These investment platform enhances financial growth both for individuals, businesses and corporations. The funds.

    The products are FBN Money Market Fund, Fixed Income Fund and Heritage Fund. They have been admitted to the daily official list of the Nigerian Stock Exchange (NSE) after successful initial offerings.

    A total of 17.98 million units of the Money Market Fund were admitted at par value of N100 each while 1.75 million units of the Fixed Income Fund were admitted at N1, 000 par value.

    The Money Market Fund invests in liquid short term instruments while the Fixed Income Fund offers investors opportunity to invest in Nigeria’s sovereign, state and corporate bonds and other long-tenor securities.

    Director, Asset Management, FBN Capital, Michael Oyebola, said the funds are expected to allow small, medium and large scale investors participate in the funds and benefit from the current high returns accruable from the market using the expertise of FBN Capital.

    He said FBN Capital would continue to offer units of the funds to investors, noting that investors can invest in Money Market Fund with as low as N5, 000 while minimum investment in the FBN Fixed Income Fund and the FBN Heritage Fund is N50, 000.

    According to him, the primary objective of the funds is to achieve a high level of income obtainable from investments that is consistent with prudent investment management, the preservation of capital and maintenance of liquidity.

    He pointed out that the high level of professional management is a major determinant of success in the volatile market.

    According to him, investors would benefit from FBN Capital’s cutting-edge investment process, which combines top-down views on the macroeconomic environment with proprietary local bottom-up analysis.

     

     

     

     

  • Fidelity Bank rewards customers

    Fidelity Bank Plc has given out five Hyundai Accent cars to five winners in its ongoing Cars and Cash Savings Splash held in Lagos.

    Twenty-one other winners also went home with cash prizes ranging from N100, 000 to N500, 000.

    Some of the customers that won cars are Okororie Daniel Ifediora from the South South region; Godson Chima Eqwuonwu, South East; Mshelia Esther Pinbar, Abuja and North Central;and Ekenechukwu Eze Nnalua, Lagos and South West among other.

    For the cash prizes, Ibrahim Obi Iro won N1 million; Tabitha Allu Anvah, Peters Adaora Jessic and Euse Chidi ,among others won N250,000 each while Abdul Bello, among others won N100,000.

    Speaking during the promo draws, the bank’s Chief Executive Officer, Reginald Ihejiahi said the draw was the second in a series to mark the 25th anniversary of the bank. He said the bank took the decision in order to reward its customers who have been supporting it since it commenced business 25 years ago.

    According to him, the exercise was also meant to deepen the financial inclusion plan of the Central Bank of Nigeria (CBN). “We started to say thank you to our customers since last year and the savings promo is one way of doing that.

    Customers of the bank should cultivate a savings culture to enable them start a business and solve other financial problems on a rainy day,” he said.

     

     

     

     

  • Imo to inaugurate committee on oil wells’ recovery

    Imo to inaugurate committee on oil wells’ recovery

    THE Imo State government has constituted a committee to recover its oil wells ceded to other states.

    A research by a consultant showed that about 120 oil wells belonging to Imo State were ceded to Rivers, Abia and Anambra states, among others.

    However, the committee said it was yet to ascertain the number of oil wells belonging to Imo State, which ceded to other states. It, however, added that the state has more than 100 oil wells.

    The Head of Department, Ministry of Petroleum and the Environment, Ifeanyi Onyicha, told The Nation confirmed the development.

    He said the committee was drawn from members of the House of Assembly, the Ministry of Petroleum and the Environment, and Niger Delta Development Commission (NDDC).

    According to him, when inaugurated, the committee is expected to meet with the Chief Justice of the Federation, the Secretary to Government of the Federation and the Boundary Adjustment Committee.

    The committee is also expected to go to the oil companies operating in Imo State to give them their location maps. With the location maps, he said it would be possible to determine in which state the oil wells fall.

    He assured that the committee would do an in-depth study and analysis and data collection to know the boundary between Imo and Rivers and between Imo and Anambra states.

     

     

     

     

  • ‘How compulsory insurance can be made attractive’

    EXPERTS have called for the enforcement of the compulsory insurance scheme to attract more people to it.

    Speaking with The Nation on the issue, the Managing Director of Royal Exchange Prudential Life, Wale Banmore, said one way to make Nigerians accept the policy is by strict enforcement.

    He said one of the biggest problems confronting the industry is lack of enforcement, adding that it is through it that people will know insurance and appreciate it when they see its benefits.

    “When you make a law that any employer with at least five workers must have a group life policy for the workers so that if something happens their family members are not stranded, you must enforce it to make it work. In Nigeria, most employers with more than five workers refuse to obey the law because they know nothing will happen to them since the government is not enforcing the law.”

    He said if an employer knows that if his staff member dies and there is no group policy coverage and the wife or a family member of the deceased cries to the Ministry of Labour or Nigeria labour Congress secretariat, or any such identified government agency to make a report, such employers will sit up, but unfortunately, enforcement is lacking.

    Banmore said if the employer or business owner knows that he will be punished if he disobeys the law, he will obey it.

    “What happens in most cases is that after the death of a staff member, the business owner, or employer will give to the widow, or the family of the deceased, pay may be N50,000 and everything ends there.

    ‘’But if he knows that the government will stand up for the bereaved and he may be asked to pay to the bereaved up to N5 million to N10 million, apart from other stringent punishments, which might include a prison sentence, the employer will pay the insurance cover to insure his workers instead of taking the punishment.

    ‘’In most instances the world over, those who insure do so because they do not want to offend the law and face the punishment. This is the situation worldwide, but where there is no enforcement, the situation gets worse as it is in Nigeria.

    “Nobody pays insurance for the fun of it, they pay because they don’t want to go against the law and, subsequently, face the penalty which is usually very heavy,’’ he said.

    Banmore decried lack of enforcement and that is why insurance penetration is still shallow, he observed. He said the world over, people pay for insurance because in those places, the law is strict.

    Publicity is another problem the Prudential chief identified. He said NAICOM has been trying to let people know the benefits of insurance.

    He claimed the government is the greatest problem in the industry because it cannot enforce the policy.

    The Managing Director /Chief Executive Officer , Union Assurance Plc, Mr Godwin Ejembi Odah, said NAICOM was working hard to ensure the development of the policy.

    He noted that NAICOM was collaborating with the government and other agencies because implementation requires joint effort.

    According to him, for people to embrace the subject, they need to see the benefits of the policies. He said NAICOM and the insurance firms were working to ensure that they enlighten the people, adding that the policies were not meant for the benefits of the industry alone, but also for the public.

    President of Risks Surveyors’ Association of Nigeria (RISAN) Mr Jacob Adeosun said insurance must work because people are performing one activity or another to achieve certain goals.

    “People are confronted with risks, which prevent them from achieving their goals. Some of the risks could result in financial loss directly or indirectly”.

    Insurance, he added, is a mechanism to provide financial compensation in the event that an insured risk occurs and results in financially quantifiable loss.

    He said: “Insurance helps insured individuals and firms to recover from impacts of insured losses e.g. fire, flood, robbery, business interruption etc. It gives peace of mind.”

    Adeosun said many individuals and businesses could not survive the huge losses inflicted by fire or flood due to lack of insurance and funds.

    “Children can conclude their education with insurance fund in the event of sudden death of their breadwinner. People and businesses in developed nations do not joke with insurance. It is because of the innumerable benefits they derive from it,” he stated.

    Adeosun said compulsory insurances are okayed by law are in the interest of the public. How does an ordinary member of the public killed or injured by a vehicle on the public road get compensated? How will the people injured or killed in collapsed hotel, church, mosque, cinema theatre (public places) be compensated without compulsory insurance in place? he asked.

    The Managing Director and Chief Executive Officer of Mutual Benefits Life Assurance Limited, Mr Femi Asenuga said the public should be enlightened on the benefits of insurance, noting that there are penalties for non-compliance which should be enforced.

    He advocatd a monitoring team that would ensure compliance. He observed that compliance was usually good because corporate bodies were more aware of the need to take up these policies.

  • Royal Exchange pays N1.58b claims

    Royal Exchange General Insurance Company (REGIC) has paid about N1.58billion as claims as at the end of the third quarter of last year.

    The figure represents 54.75 per cent increase over the amount paid in the corresponding period in 2011, which stood at N1.02billion.

    In a statement, the Managing Director, Olutayo R. Borokini, said the company’s focus is the settlement of genuine claims, adding that this would continue to be the philosophy of the company in future.

    He said customer satisfaction is the fulcrum of insurance and this, inevitably, builds customer loyalty.

    “Once Royal Exchange is able to pay claims as they arise, the genreal public will have faith to take out insurance policies on their lives and properties because they are convinced that should a claim/loss arise, the company will be able to meet its financial obligations to its clients.”

    Giving the breakdown, he said N631 million was paid on Fire insurance policies, accounting for 39.9 per cent of the N1.58billion paid out as claims, while N398.7million was paid out on motor insurance policies, representing 25.2 percent of total claims paid, and Industrial All Risks insurance policies accounted for 11 per cent, amounting to N174.6million as claims.

    Other classes of insurance on which claims were paid, include non-motor insurance policies N164million, representing 10.3 per cent; marine insurance N131.3million, 8.3 per cent; while N68.1 million was paid on oil and gas insurnace policies during the period.

    A total of N12 million was paid on engineering insurance policies, he added.

    “These payments have shown that Royal Exchange General Insurance is more than capable of meeting its various claims demands.

    “The company paid close to N4billion to the Nigerian Bottling Company for the fire in its Benin plant in 2010 and was the lead insurer in a consortium that paid out over over N3.63billion to Friesland Foods West African Milk Company (WAMCO) over the major flood disaster that occured in its lagos factory, in 2011,” he stated.

  • Glo offers free data on Samsung Galaxy S3, Note II

    Glo offers free data on Samsung Galaxy S3, Note II

    Globacom, Nigeria’s National Telecoms Operator, is offering  a free six-month data plan with Samsung Galaxy S3 and Samsung Note II for its subscribers, giving them an opportunity to enjoy instant internet connection from the smartphones.

     The unique benefits for subscribers who opt for the twin Samsung Smartphone offers according to  Globacom’s Marketing Coordinator, Mr. Niyi Olukoya  include 500MB free data on activation, 100MB free data every month for 6 months and discounted tariffs for voice calls at 9k/sec to nine Friends and Family and 18k/sec for other calls to all Networks. The subscriber will enjoy all the benefits once he recharges with N1000 airtime monthly.
    “In addition, the mobile internet service on the bundled handsets rides on Globacom’s robust fibre optic infrastructure which runs from Lagos across the West African coast to the United Kingdom and the USA. With these, the subscriber will enjoy fast and reliable Internet connection round the clock,” Olukoya said.
    Globacom subscribers wishing to take advantage of the special offer were urged  to visit any of the Gloworld  shops in different parts of the country. Samsung Galazy S3 and Samsung Note II run on Android 4.0 Operating System, a 1.5Ghz processor and a 8mm Camera.
    The telecom company  had earlier released the mini-sized Glo Mobile Wi-Fi that wirelessly connects multiple devices, with equal power to the internet. It uses WI-FI to enable PCs, laptops, tablets, smart phones, PSPs, to browse, send emails and connect to social networks seamlessly.
    The Mobile Wi-Fi comes with a free SIM and free 1GB data for the first month and another free 1GB data for the next six months based on continuous subscription.
  • Stanbic IBTC Pension records one million customer milestone

    Stanbic IBTC Pension records one million customer milestone

    Stanbic IBTC Pension Managers, a subsidiary of Stanbic IBTC Holdings PLC, recently celebrated its achievement of one million retirement savings accounts, thus maintaining its position as the leading pension fund administrator in the country.

    At a forum to celebrate this achievement, the company described the industry-first milestone, accomplished in less than a decade of record-breaking growth in the country, as a sign that customers views the company as safe haven for investment and as an institution that delivers exceptional service to its clients.

    Chief Executive Officer of Stanbic IBTC Pension Managers, Dr. Demola Sogunle, said that the organisation’s achievement of this historic milestone demonstrates its leadership position in the industry, being the first pension fund administrator to reach and surpass the one million customer mark. “One million customers in less than a decade is an important achievement and reflects well on the solidity of Stanbic IBTC Pension Managers as Nigeria’s leading pension fund administrator.

    We are very optimistic about the future and the assurance that we give our present and our future clients is that we will continue to manage their funds in a very responsible manner,” he said.

    With the achievement of the milestone in June 2012, Sogunle added, Stanbic IBTC Pension Managers now has over one million retirement savings account holders and assets under management of more than N865billion, paying about N1.5 billion to over 23,000 retirees monthly.

    “Over N112 billion has been paid regularly to retirees since we commenced operations in 2005. Our aim is to continue to set ever higher standards of service delivery and ensure that our retirement savings account holders derive maximum value from their investment,” he explained.

    On her part, Chief Executive Officer of Stanbic IBTC Holdings Plc, Mrs. Sola David-Borha, credited the organisation’s success to its understanding of local needs, driven by a vast pool of sound and experienced personnel, coupled with its membership of Standard Bank Group, Africa’s biggest banking conglomerate.

    According to David-Borha, Stanbic IBTC Pension Managers leverages on Standard Bank’s over 150 years of experience and pedigree in offering its clients excellent services. This foundation, coupled with the organisation’s strong customer understanding, drives its ability to succeed through the right use of insights on its clients’ needs.

    “This is a key historical milestone in Stanbic IBTC Pension Managers’ successful growth story. The achievement reflects the collective focus and commitment of the organisation. It also illustrates the power of our shared values and vision, enabling us to drive these results and also ensuring the safety of clients’ investments. I congratulate all of our employees, partners and customers who contributed to this incredible success story. The milestone will inspire us to achieve even greater success in the years ahead,” she said.

    David-Borha assured customers of Stanbic IBTC Pension Managers’ commitment to delivering exceptional value to retirement savings account holders and retirees and on that basis, reinforces its leadership of the pension fund administration segment of the economy.