The Nation Newspaper

Tag: Insurance

  • Shareholders’ group lauds insurance firm’s profitability

    Shareholders’ group lauds insurance firm’s profitability

    Shareholders under the aegis of Constance Shareholders’ Association of Nigeria, one of the frontline shareholders’ groups has passed a vote of confidence on Lasaco Assurance Plc, stressing that the latter has lived up to its pedigree.

    Shehu Mallam Mikail, National President, who gave this commendation on behalf of his group at the weekend shortly after its annual general meeting in Ilorin, Kwara state capital, said the insurance firm has proved through its impressive business fundamentals that it is one of the companies to beat in the sector.

    “This is one of the most transparent insurance firm its in Nigeria in giving accurate information to shareholders/stakeholders who believes in adherence to good corporate governance also taking bold steps to make sure that Nigerians show interest in having taking insurance policies and to believe in insurance companies and the company was able to make a profit after taxation of 271,405 in 2013 compare to 2012 which was 92,903 This is an encouraging development in an insurance industry.”

    Expatiating, Mikail said: “We would like to implore NAICOM to give adequate support to all insurance firms that abide to a good corporate governance so that Nigerians would be able to have confidence in Nigeria Insurance firms in order for people to be able to take one insurance policy or the others as we investors would be able to have confidence in investing in Nigeria insurance companies.”

    NAICOM, he further stressed, ” should build a better relationship with the insurance firms by giving prompt response to any required information by the companies and not wait until they are  penalised which does not necessarily required in other to build a room for the insurance industry in the country so that our economy would be able to have a sound understanding because most of Western World Insurance companies are the backbone of their economy which give adequate confidence to an investor to invest in their economy.”

  • ‘Weak credit system cause of low insurance penetration’

    The Nigerian credit market needs to be opened up to assist in bridging the gap of low insurance penetration bedeviling the insurance industry, analysts have said.

    Nigeria’s insurance penetration according to recent statistics stands at abysmally 6.5 percent, while the contribution to the nation’s Gross Domestic Product (GDP) is less than one percent with a population of over 170 million people.

    The analysts made their views known at a seminar on “Retail Insurance Business- a Begging Challenge,” held  in Lagos and organised by HR Nigeria Limited, consultants and actuaries. They believe that the country’s underdeveloped credit system, which has failed to bolster demand for supporting products including consumer goods and services is a major factor slowing insurance penetration.

    They stated that other markets within and outside Africa succeeding in insurance are strong in the offering of credit facilities to the populace, and this in itself creates an immediate need for insurance. According to them, insurance provides support for mortgages, loans, car financing, as well as asset acquisition, which do not only drive purchases but also increase penetration of insurance.

    They also asserted that credit in itself creates an immediate need for insurance, support for mortgages, loan acquisitions, car financing as well as asset buying particularly household equipment.

    Looking at other challenges bedeviling the insurance industry, they observed that there is a perceived lack of confidence in the insurance industry, the key concern resonating that “insurers do not pay claims.”

    Beyond that, they also identified the lack of regulatory support for non-traditional distribution channels namely “corporate agents” for insurance like mobile network providers and bancassurance.

    Some practitioners, however, brought the regulator – the National Insurance Commission, under fire because they felt that the best way to invoke change was by regulatory changes especially in becoming less stringent on licensing of alternative distribution channels.

    The Managing Director, Custodian and Allied Plc, Wole Oshin, said the issue mentioned is important and needs the attention of  NAICOM. He said NAICOM need to liase with the Central Bank of Nigeria (CBN), otherwise achieving penetration like other markets would be difficult.

    Jim Roth of Leapfrog Investments stressed the importance of understanding the target market, stating that compulsory insurances, mobile insurance as well as partnerships were distribution channels that succeeded in other markets. He said that another successful approach undertaken by Leapfrog to improve the perception of trust of the insurer was by partnering with a well-known, trusted non-insurance brand.

    He however faulted the traditional agency route of selling insurance, which is currently the major model here.

    The Chairman, Claims International Limited, Ope Oredugba, stated that efforts must be geared towards reaching out to the emerging consumer group, with the kind of products that will not only meet their development needs but also reasonably affordable.

    NAICOM Deputy Commissioner, George Onekhena stated that the Commission was already looking at distribution and may soon come up with a policy on the development. He however, stressed that a major challenge facing the development of the industry is premium leakages, and called for strategic efforts by operators to reach out to the mass of the uninsured public.

    He noted that poverty is a major problem in our society and many cannot afford to buy insurance. He said a strategic effort to empower the populace would bring them closer to insurance.

  • Health insurance scheme attendance hits 600,000

    No fewer than 87,000 people have enrolled in the Kwara State Community Health Insurance Scheme, the  Commissioner for Health, Abdul K. Isah, has said.

    He put general clinic attendance  at 600,000, adding: “Out of these figures, deliveries are about 6,000 while five per cent was done through caesarian section.”

    The commissioner spoke in Ilorin, the state capital, during a meeting with a health team from  Ogun State.

    The  team led by Ogun State Health Commissioner, Dr Olaokun Soyinka was on a study tour of the Kwara State community health insurance scheme.

    Isah said: “Today, the state is ranking as the first in community health in the country because of the progress we have been able to achieve since we started in 2007. Between 2007 and now, we have been able to move across 10 of our 16 Local Government Areas (LGAs). We have also been able to cover the three senatorial districts of the state.

    “The beauty of this is that we now use our community health insurance to take out the other areas through which the government is participating in maternal and child mortality reduction.

    When you look at the clinical attendance in the last years, you will see that the indices should naturally be going up, not to talk of the fact that within the last three years of this government we have been able to shore up our human resources for health. Currently, we have about 25 consultants working with us.

    “We have partners that are supporting us. We initially started with the Dutch Government taking responsibility for the larger part of funding as the scheme is more or less free for our people.”

    Speaking on the process of eligibility, he said: “You only need to pay N500 and then you have access to quality healthcare for the whole year including drugs, surgery etc.  Later as we started scaling up they started doing larger while we were doing lower percentage. We are at the current stage of doing the larger while they will do the lower percentage. We are gradually migrating to when the state will pay 100 percent. This is not only in terms of resources but government’s commitment.

    “It is the funding aspect that is the most challenging because of the fact that our federal allocation accruals have shrunk abysmally. We are currently the first from the bottom in terms of Federal Government’s monthly allocations to states.

    “I don’t think your state will have much challenges moving the scheme forward as soon as it takes off.”

    Earlier Dr Soyinka expressed optimism that the visit would be beneficial to his state, saying that

    “we are on a study tour of the Kwara state Community Health Insurance Scheme and we do hope at the end of the day that we will have something to take back to our dear state. our purpose here is to learn about your operations.”

     

  • What you need to know about aviation insurance

    Are you a frequent traveller or an infrequent traveller? Whichever way, you need to know your insurance rights while on board an airplane. There is also the need for you to know your liabilities and the liabilities of the airline on you as a passenger on board a local or international flight. Most times, passengers don’t bother to read the conditions in their ticket. Many don’t even know they have a right to ask the airline to show evidence of insurance either during purchase of ticket or at boarding point. Here are tips for you on aviation insurance

    Passenger and Passenger baggage Legal Liability Insurance

    This type of cover is effected by an air operator or airline to protect itself against any sum or sums which they would be liable to pay in respect of any accidental bodily injury death or loss of baggage to any person being a passenger and holding a ticket.

    These liabilities apply when the person is entering into, is being carried in or is alighting from the aircraft. The insurer indemnifies the insured against all sums he is legally liable to pay whether according to international law or local legislation. Subject to a maximum limit of liability agreed at inception of the policy. Standard exclusions include the crews which are normally covered under a separate policy.

    Third Party Legal Liability

    This is effected by an aircraft operator to indemnify himself against all sums the insured would become legally liable to pay in respect of accidental injury/death or accidental property damage to third parties or to the public caused directly by the aircraft or falling of objects there from. The limit of liability is usually agreed at inception of the policy. Various countries have set minimum limit for aircraft that would overfly their air space. This type of insurance is sometimes referred to as public legal liability insurance

    WARSAW 1929/Montreal/Hague Conventions

    There was a convention in 1929 which set the stage for the future development of all international treaties. The convention has had profound and lasting effects on the rights of passengers and obligations of air carriers. At this convention, participating countries endorsed an Agreement/Protocol for the unification of certain rules relating to international carriage by air. It dealt with the carriers liability to passengers and goods including baggage. The various conventions are domesticated by member countries by passing appropriate legislation.

    NCAA Act 2006

    Relevant sections relating to passenger liability is of interest to us. The Act prescribes a minimum legal liability of US$100,000 (16.3 million) per passenger on the domestic route. Prior to this Act, the limit was US$10,000 (1.63 million) per passenger on the domestic route.

    Claims Procedure for Passenger Legal Liability

    The passenger should immediately notifiy the airline who in turn will inform the insurance company. Obtain the passenger manifest together with the Nationalities of the passengers. Also obtain Specimen Air ticket, passenger flight coupons, statement of claim and names of injured passengers.

    Obtain medical report in case of bodily injury, copies of any correspondence with the next of kin or passenger legal representative, death and burial certificate, name and addresses of the next of kin and the passengers. Limit of liability is governed by applicable local and international laws or convention.

    Passenger liability claims fall under two main categories which is claims for death, injury, loss or damage to property or delay arising out of carriage under a contract of carriage with a commercial carrier.

    The other is claims arising for death etc occurring on flights where the passengers are guests in a private aircraft or there is no contract of carriage.

    A guest is described as somebody who was invited on an airplane and did not pay airfare. In this case, the person cannot make a claim for compensation.

    Claims for Passenger Baggage

    Passenger baggage is divided into two separate categories. The checked  or registered baggage and the Unchecked or unregistered baggage.

    Checked baggage is handed over to the carrier, weighted and a receipt issued (luggage tag) Unchecked hand baggage is retained by the passenger and taken into the aircraft with maximum weight of 10kilograms and consist of small items, brief cases, Hand bags, coats etc.

    The warsaw convention holds the carrier liable for loss or damage to baggage including damage occasioned by the delay of checked baggage unless the carrier is able to prove that he took all necessary steps to avoid the loss, that there was contributory negligence on the part of the passenger or that the loss or damage was caused by the negligence of the aircrew.

     

  • Health insurance scheme for communities

    The Federal Capital Territory (FCT) Health Insurance Scheme (FAHIS) has been extended to Yewuti community in Kwali Area Council and Abaji town of Abaji Area Council of the FCT.

    Distributing health insurance cards to residents of the two communities, the Coordinator of Community-based Health Insurance Scheme (CBHIS), Dr. Grace Aganaba, urged them to utilise the affordable health scheme extended to them by the FCT Administration.

    According to Aganaba, the FAHIS would assist the residents in improving the condition of the Primary Healthcare Centre in their communities, adding that the FCT Minister of State, Oloye Olajumoke-Akinjide is committed to providing affordable and accessible healthcare delivery for people in rural communities of the FCT.

    “The health of the people is very important to government of the FCT as it believes that a healthy population constitutes a wealthy society. That is why the Minister of State for the FCT, Oloye Olajumoke Akinjide is doing everything possible to ensure that residents are healthy enough through the community health insurance scheme.

    “A society where the people are sick will also have a sick economy. That is why we are urging the FCT residents to key into this insurance scheme to enable them to get their insurance cards and have access to affordable healthcare delivery. This will make them remain healthy for society to grow,” she said.

    The Ona of Abaji, Alhaji Adamu Yunusa, said as a traditional ruler, it is left for them to invite other traditional and religious leaders to educate them, so that they can also enlighten the people on the need to participate in the scheme and access healthcare delivery with minimal expenses.

    The Village Head of Yewuti community, Mr. Yunusa Mohammed, who praised the effort of Olajumoke-Akinjide and Aganaba for taking health insurance to the community, described it as the first of its kind in the FCT. He promised to give the scheme the needed support it would need to be successful in their community.

  • Oshiomhole orders immediate payment of Bendel Insurance Players

    GOVERNOR Adams Oshiomhole of Edo State has ordered the immediate payment of the salaryn arrears of Bendel Insurance players and officials .

    The directive to pay all outstanding monies came when the governor received some key persons who are involved in sports management in the state and Nigeria.

    Oshiomhole, who our sources said expressed some reservation in the way and manner coach Austin Eguavoen left the club, said the governor promised to do all that is necessary to get Bendel Insurance out of the National league and into the premiership .

    The governor also directed that a 36-seater bus should be provided for the players , while a 14-seater bus for the officials .

    The Commissioner for Sports , Comrade Chris Okaeben last week told sports journalists in Benin that the vouchers were currently in the office of the Accountant- General while also promising to ensure prompt release of their salary arrears .

    Okaeben expressed confidence in the players and the technical crew led by Roland Ewere to deliver Bendel Insurance our of their present predicament .

    Bendel Insurance will on Saturday play their third match in the second half of the 2013/14 league season with MFM Football Club in the Samuel Ogbemudia stadium main bowl.

  • ‘Why MTN launched mobile health insurance’

    MTN veered into providing mobile health insurance because it believes in a healthy society, its Chief Executive Officer, Michael Ikpoki has said.

    He spoke when the telco signed a deal with the National Health Insurance Scheme (NHIS) and the nation and the aggregator, Salt and Einstein.

    He said health is wealth and a healthy citizenry will remain invaluable asset to the productive sector of the economy.

    He said:  “At MTN, we believe that health insurance contributes to removing the financial barriers to healthcare, thereby giving people unrestricted access to good health care without having to pay out-of-pocket. More than bringing flexibility and ease to paying for health care service, health insurance is also a means of providing greater access to healthcare for larger segments of a population. Indeed we believe health insurance is imperative for closing the gap between the availability of health care service and the ability of the citizenry to access it.”

    Described as The MTN Y’ello health cover, he said it is an all-inclusive mobile health insurance scheme, which will give all Nigerians the opportunity to  access good, affordable and quality healthcare service wherever, whenever the need arises. The scheme will allow subscribers to gain access to pre-defined treatments and also freedom to choose their own Health Maintenance organisation (HMO), and healthcare provider from over 6000 registered partners across Nigeria.

    Under the scheme, subscribers will have access to unlimited number of visits to the hospital with at a weekly deduction of   N250 only.

    NHIS Executive Secretary, Dr. Femi Thomas said: “This new service will provide Nigerians affordable health insurance cover on a pre-paid basis.

    “Through the Y’ello Health, mobile subscribers are able to opt into a micro healthcare insurance scheme through Health Management Organisations (HMO’s), using their mobile phones for a range of pre-defined medical treatments for which affordable premium can also be remitted through the subscribers’ mobile phone.

    The MTN Y’ello is one of the many ways Africa’s leading telecommunications network is adding value to the lives of it subscribers. The next leg of the launch will take place in Abuja at a yet-to-be-announced date.

  • Insurance firms’ CEOs face sanctions

    Insurance firms’ CEOs face sanctions

    The fate of 13 chief executives of insurance companies and broking firms is hanging in the balance following their failure to submit their audited accounts to the National Insurance Commission (NAICOM).

    For this breach, NAICOM has given the affected institutions a seven-day ultimatum to explain why they should not be sanctioned.

    The affected CEOs are the Managing Directors of African Alliance Insurance, International Energy Insurance Plc, Industrial & General Insurance Plc, Capital Express Assurance Limited, Great Nigeria Insurance, NICON Insurance Limited, Nigerian Agricultural Insurance Corporation, Staco Insurance Plc, Standard Alliance Insurance Plc, UNIC Insurance Plc, Union Assurance Company Limited and Goldlink Insurance Plc.

    Others are: Alliance & General Insurance, Allinace & General Life Assurance which has been under suspension since 2012,  Investment & Allied Insurance Plc and Spring Life Assurance Plc.

    In a July 21 letter to the chief executive officers, NAICOM requested the 13 CEOs “to give acceptable explanations within seven days on why regulatory actions should not be taken against them for failing to submit their 2013 annual report as required by law”.

    The seven-day ultimatum is with effect from July 21.

    According to the memo, NAICOM stressed that it will be decisive on any of the CEO who fails within the stipulated seven-day period to explain why the sanction should not apply.

    The Insurance Act 2003 mandates insurance companies to file their annual accounts, six months after the financial year.

    The law for filing of annual returns and accounts states that “all insurance and re-insurance companies shall submit to the Commission three copies each of duly audited financial statements and annual returns in prescribed forms.

    “In respect of operation of the company for 2010, returns shall be filed on, or before 30th June, 2011. Failure to file annual returns as prescribed by Section 26 of the Insurance Act, 2003 constitutes a ground for cancellation of operating licence.”

    It states that “an insurer shall be deemed to have failed to file its annual returns if the provisions of Section 26 of the Insurance Act 2003, are not met 12 months after the end of the financial year. For purposes of compliance, accounting period shall run from 1st January to 31st December, 2010,” it added.

    Last week, The Nation reported that NAICOM has stepped up its regulatory duties by releasing information on insurance companies’ financials to the public.

    However, the Commission has not been able to provide data for 2012 and 2013 owing to late, or non-submission of some companies accounts since 2012.

  • ‘How insurance can curb terrorism’

    ‘How insurance can curb terrorism’

    A UK based lawyer and management consultant has said that the current state of terrorism in the country could have been curtailed, if only Nigeria has a robust and fit-for-purpose insurance industry.

    Kachi Okezie, told journalists in Abuja that in advanced societies, the insurance industry is a major deterrent to negligence by both public authorities and the general public.

    According to him, “the insurance industry is well known for its powerful lobbies all over the world. In the UK, the industry has forced non-performing police chiefs from office for failing to curb rising crimes such as burglary which hurt the industry’s finances the most.”

    “Aside of individual cover,” Okezie explained that, “the government’s own responsibility is captured in the Criminal Injuries Compensation Scheme (2001) administered by the Criminal Injuries Compensation Authority under which compensation is payable to anyone (regardless of their nationality) who has sustained a criminal injury on or after August 1 1964.”

    He defined ‘criminal injury’ as being “one or more ‘personal injuries’ directly attributable to a crime of violence” and includes both physical and mental injuries.

  • Fed Govt mulls insurance for farmers

    Fed Govt mulls insurance for farmers

    The Federal Government is set to launch national crop insurance for farmers following the 2012 flooding which destroyed crops and farmlands, Minister of Agriculture and Rural Development, Dr. Akinwumi Adesina has said.

    The minister who spoke in Abuja at a workshop on ‘Water Management Solutions for Flood Recession and Dry Season Agriculture in Nigeria,  said the flooding led to low productivity and severe food loss.

    Adesina said  the programme which will start from next year will target 10 million farmers.

    The crop insurance scheme, he said will insure farmers against shocks and losses from weather related events.

    He said: “Our goal is to insure no less than 10 million farmers. We will also design and implement a flood disaster payment policy that will protect farmers, communities, and states from economic losses due to flood.”

    The minister called for proper management of water to improve production, adding that water will be the most limiting factor affecting food production.

    Adesina said: “We must improve the efficiency with which we use water and get more grains per drop of water. To achieve this, I believe we must focus on small scale water management system, not just the large scale irrigation schemes.

    “Small scale water management systems are more cost effective, easier to implement, reaches millions of farmers, have greater impacts on expanding food production and food security, and empowers rural community.”

    Speaking on International Water Management Institute (IWMI) collaboration in the country, he said the project will be in two phases. The first phase, he explained will focus on creating an evidence-based framework on assessing floods and flooding patterns for decision making purpose while the second phase will focus on agricultural water management solutions which will be sealed up to support and improve dry season farming.

    Director, Africa, IWMI, Dr. Olalekan Williams said the goal of the project in the country is to assist the government to increase agricultural production and achieve food security through sustainable water management.