An Abuja High Court on Wednesday sentenced Okechukwu Chukwulozie, a former Commissioner of the National Insurance Commission (NAICOM) to 15 years in prison over N10.4 million fraud.
The Independent Corrupt Practices and Other Related Offences Commission (ICPC), in 2007 charged Chukwulozie, his wife, Angela; and a former Deputy Commissioner in charge of Finance and Administration, Adedolapo Ogungbe on 15 counts of N10.4 million fraud.
Delivering judgment, Justice Mudashiru Oniyangi, said the court sentenced Chukwulozie to three years on each of the five counts he is convicted for and it will run concurrently.
Oniyangi, who did not give the convict an option of fine, held that the ICPC had proved all the ingredients of Section 19 of the ICPC Act against him.
“The ICPC has proved beyond reasonable doubt that a commissioner of NICON, Chukwulozie, demanded fifty per cent of fees paid to liquidators of Gateway Insurance Plc.
“Beyond reasonable doubt is the standard of evidence required to validate a criminal conviction. Generally the prosecution bears the burden of proof and is required to prove their case.
“The prosecution has presented to court evidence to support its charges against the convict.
“In this case, they have done so. The court hereby sentences you to three years each on each of the five counts level against you, which will run concurrently,” the News Agency of Nigeria quoted the judge as saying on Wednesday.
However, Mudashiru, held that the ICPC had failed to prove its case against the second (Angela) and third accused (Ogungbe) persons.
“The court discharges the second and third accused persons charged with aiding and abetting the crime.
“You are hereby discharged and acquitted,” he said.
Tag: NAICOM
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Ex-NAICOM chief gets 15- year sentence
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Irukwu urges speedy passage of insurance bill
Veteran insurance practitioner, Prof Joe Irukwu has stressed the need to fast-track the review of the Insurance Act 2003 to enhance the growth of the industry.
Irukwu, a Senior Advocate of Nigeria (SAN), expressed disgust at the slow work on the bill at the National Assembly.
He said when the bill is eventually passed into law, it will change the face of the industry.
He said: “It will change the face of the industry and everybody will be better for it. I pray that the National Assembly will take the matter more seriously and try and fast-track the its passage into law. I think it will help to improve insurance awareness, consciousness and the development of the insurance industry. “
Commissioner for Insurance, National Insurance Commission (NAICOM), Mr. Fola Daniel earlier raised hope that the industry may get a new insurance law before the end of last year.
Giving reasons for the delay in passing the bill into law, Daniel said: “Since the review of the Insurance Act started, we have had about four different ministers and no minister will rush to take actions on the new bill without understanding the basics of the law.”
He explained that the sector had done all that was necessary to increase sufficient understanding of the law for smooth passage.
The commission, he added, had a retreat for committees that have oversight functions over insurance in the House of Representatives, so that when the bill gets to the parliament, it will enjoy easy and quick passage.
He said the bill is aimed at supporting the government’s quest to reduce poverty.
He said: “In the last three to four years, the industry has adopted developmental strategy. We believe that unless the industry is developed, it would lose its vibrancy; the regulator over time will become idle as there will be nothing to control or regulate. So, we have focused more on developing the industry.
“The focus has been on development and that is where we are going. The law that is in the offing will support our development efforts and create jobs. One of the cardinal policies of the administration is to create jobs.”
Daniel explained that a major condition for the development of insurance business is a strong legal system.
He said: “The legislations are not only weak but sometimes difficult to enforce.
The regulatory framework is ‘compliance-based’ rather than ‘frame-work’ as is the case with most advanced jurisdictions. This arrangement hardly gives the commission the capacity to take regulatory initiatives in urgent and critical situations.
“It is, therefore, desirable that the various pieces of legislations constituting the existing legal framework should be consolidated. The Insurance Law Review Committee appointed by the Federal Government to review the existing insurance laws completed its assignment since 2010.
“The draft revised Consolidated Insurance Bill is ready for passage to the Legislature by the Executive. Depending on the agenda of the National Assembly, the country may expect a new insurance regulatory regime before the end of 2013.”
He noted that despite the limitations of its law, NAICOM has continued to provide leadership and roadmap for the industry in the relevant areas through issuing regulatory guidelines, circulars and letters.
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Operators hail ‘No premium, no cover policy‘
One year after the introduction of the ‘no premium, no policy’, operators say it has boosted their income.
Managing Director, FBN Life, Mr. Val Ojumah told The Nation that the implementation of the policy was the best thing that came from the regulator last year.
He said though it was difficult for the public to accept it, they finally embraced it and started buying insurance policies on a cash and carry.
He said the implementation affected the public sector group life insurance because the government was used to buying insurance on credit.
Managing Director, Custodian and Allied Insurance Plc, Mr. Wole Oshin said the regulator has acted in the best interest of the industry with the enforcement of no premium no cover.
He said: “The response of the public has been positive. Before now, they have taken the industry as unserious but it is a much improved industry now.”
Managing Director, Anchor Insurance, Mr Muyiwa Adeduro, said the policy affected his company’s income positively.
He said: “The initiative by NAICOM is commendable because it has helped the industry tremendously in terms of premium collection and increased our income. Although we lost quite a number of customers that are used to paying by instalments or at the end of the year, but they have started taking us more serious than before. It has increased our premium, improved our cash flow and liquidity,” he said.
Last year, NAICOM decided to enforce Section 50 of the Insurance Act, 2003, which operators had ignored.
The section states: “The receival of an insurance premium shall be a condition precedent to a valid contract of insurance, and there shall be no cover in respect of an insurance risk unless the premium is paid in advance.”
NAICOM Commissioner for Insurance, Mr. Fola Daniel, warned underwriting firms against providing insurance cover for their clients on credit.
“Henceforth, no insurer shall grant insurance cover without having received full premium or premium receipt notification from the relevant insurance broker. Any insurance contract issued contrary to the above is therefore null, void and of no effect. The Commission will sanction any operator that issues a policy or grants a cover relating to such a contract.
“The Commission has deemed it imperative to ensure compliance by all insurance operators with the provision of the law in order to protect the interest of policyholders and other stakeholders from the negative consequences of the existing practice.
“This state of affairs has not only increased the credit risk of insurers, but has also introduced uncertainty in the market as to the capacity of many insurers to meet their obligations to insurance policyholders and other stakeholders. Thus, the enforcement of the law is indeed to the benefit of all stakeholders in the insurance industry,” he said.
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‘Foreign investors’ll change market’
The entry of foreign investors into the industry will change the market space, Managing Director, Cusolidated Hallmark Insurance Plc, Mr Eddie Efekhoha has said.
Besides, the foreign investors are coming with capital, skill and knowledge, Efehkoha told The Nation in Lagos.
He, however, pointed out that one of the challenges that the foreigners may faced is rate cutting.
He said it was regrettable that businesses were bought by some underwriting firms who cut rates to the detriment of the industry.
He said: “It is unfortunate that some of us do not consider the high marketing cost involved in the business nor follow the rates approved by the regulator, the national Insurance Commission (NAICOM).
“Some of us are disciplined, but we have not been able to discipline ourselves as a market and that is why the regulator has stepped up to help us.”
Efekhoha noted that before now, there was no self-discipline or ethics but most insurers now know that except we operate as professionals, there will be no way forward. The new entrants too will trigger more change.
“We have the opportunity to make it going by the country’s population if we get things right among ourselves. The poverty level too has to improve in order for us to achieve success in micro insurance.
“Despite the commencement of the insurance industry database three years ago, the industry is still struggling to register less than two million out of 11.5 million vehicles in Nigeria,” he noted.
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‘Insurance’ll thrive in 2014’
Last year was tough and critical for the insurance industry in terms of regulation by the National Insurance Commission (NAICOM). In this report, Omobola Tolu-Kusimo takes a look at the challenges and achievements of the industry in 2013 and prospects in 2014 and beyond.
The insurance sector has witnessed some positive changes owing to stricter regulatory and operational frameworks enforced by the National Insurance Commission (NAICOM).
Although the sector is yet to reach its peak, what obtains is a departure from a sector that was previously characterised by poor regulatory framework, coupled with poor service delivery and a battered image.
Earlier, the industry was laden with a myriad of problems, ranging from lack of trust, non-payment of claims, rate cutting, delays in premium remittance, inability of players to explore and exploit opportunities presented by the implementation of the local content policy of the federal government and unethical practices, among others.
Presently, the number of existing insurance firms in Nigeria include 14 life, 31 non-life, 11 composite and two re-insurance companies. Total net premium of the industry’s contribution to the Nigerian economy is N185 billion with total gross premium put at N234 billion.
Regulation, Sanctions
and Penalties
NAICOM has continued to play its supervisory role with increased on- and-off site inspections of operators. This has ensured prompt settlement of claims, improved corporate governance and risk management capacity and reduced the incidence of non-remittance of premium to insurers. It also intensified its enforcement of regulations and guidelines in the review period, in line with global best business practices, thus improving the confidence level of the insuring public as well as investors and stakeholders.
The Commission instilled discipline among the operators by wielding the big-stick against erring companies where necessary and adopting the carrot approach in some instances. For instance, the commission decided to waive the N5000 penalty charged daily on late submission of result because of the challenges they faced in transiting to the International Financial Reporting standard (IFRS).
NAICOM is silent on whether if will wield the big stick against seven companies that were unable to submit their 2012 financial statements one year after, going by the Insurance act, 2003.
There are pending issues that bother on regulation involving Investment and Allied Assurance (IAA), Alliance and General Insurance (AIG), Fidelity Bond Brokers and others that were suspended from the market owing to financial misappropriation and corporate governance abuse, among others. However, in the case of AIG and Fidelity Bond, NAICOM is incapacitated because the duo have dragged the regulator to court.
No-Premium,
No-cover policy
The year started with NAICOM announcing that insurance will no longer be sold on credit, but on a cash-and-carry basis.
Commissioner for Insurance, Mr Fola Daniel, said with effect from January 1, 2013, the enforcement of sanctions against insurance operators who issue policies, or grant covers in violation of Section 50 (1) of the Insurance Act, 2003, will commence. The section states that “the receipt of an insurance premium shall be a condition precedent to a valid contract of insurance and there shall be no cover in respect of an insurance risk, unless the premium is paid in advance.”
He said the Commission deemed it imperative to ensure compliance by all insurance operators with the provision of the law in order to protect the interest of policy holders and other stakeholders from the negative consequences of the existing practice.
Daniel said the current state of affairs before its announcement did not only increase the credit risk of insurers, but also introduced uncertainty in the market as to the capacity of insurers to meet their obligations to policyholders and other stakeholders.
He advised Ministries, Departments and Agencies of governments, corporate organisations and members of the public to ensure strict compliance with the law.
International Financial Reporting System
The year also heralded the full implementation of the IFRS. Underwriters jostled to comply as their 2012 accounts were subjected to tough scrutiny by NAICOM. Many of them made frequent visits to the Commission’s office in Abuja, as they ran around to answer volumes of queries on their accounts.
As at end of 2013 financial year, only 38 firms’ accounts were approved with companies such as Oceanic Insurance Company Limited; Lasaco Assurance Plc; Crystal Life Insurance; Mutual Benefits Life Assurance Limited; Mutual Benefits Assurance Plc; Nem Insurance Plc; Linkage Assurance Plc and Union Assurance Limited getting the last minute approval as at December 20.
Merger and Acquisition
The industry witnessed one successful merger by Crusader Insurance Plc and Custodian and Allied Insurance Plc. Old Mutual, however, acquired Oceanic Life and is about adding the general arm of the group, Oceanic Insurance Company Limited. Others such as FBN Life, Linkage, Cornerstone, AIICO, Insurance PHB, also mulled the option.
Release of Takaful and
Micro insurance guidelines
Less than two months to the end of the year, NAICOM released guidelines on Takaful and Micro Insurance in line with the provisions of the 1997 Insurance Act, and the need to complement the current drive for Financial Inclusion to increase insurance penetration in Nigeria.
Daniel said the Commission was prepared to give all the necessary support for this segment of insurance which is expected to create wealth, alleviate poverty, increase penetration of insurance and, to a larger extent, bring insurance practitioners in Nigeria to the same page as their counterparts in other jurisdictions.
Products Development
Following the trend of the emerging market, NAICOM encouraged the insurance companies to design and market attractive new products to entice customers with the aim of deepening the market and increase sales. Companies were asked to submit updates on products’ performance on quarterly basis after approval has been granted by the Commission to sell the products.
Presenting an update on the performance of products, NAICOM said about 80 per cent of the products approved in 2012 performed well as at end of last year.
Market Development and Restructuring Initiative (MDRI)
Although the MDRI initiative was meant to achieve a N1.2 trillion premium income as at end of 2012, consumer apathy in the market lowered prospects of actualisation of the target.
Last year, the momentum to sell the compulsory insurances around the country by operators was low due to the inability of the commission to gather full support of law enforcement agencies to enforce the law.
Consultation Committee
The industry inaugurated the Insurance Industry Consultation Committed (IICC) headed by the President, Chartered Insurance Institute of Nigeria (CIIN), Fatai Lawal. It was charged with speaking for the industry and helping to resolve all issues among operators from the different arms of the industry.
2014 Projections
Operators and stakeholders are of the expectation that by 2014, various initiatives of the regulator will increase insurance penetration and more Nigerians will buy into insurance. This, they believe, would boost the industry’s contributions to the nation’s economy.
Insurance veteran, Prof Joe Irukwu, said the industry fared well in 2013 but could do better this year. He said premiums were growing, but that the level of insurance awareness remained very low.
He said: “Everybody in the industry has to do everything possible to get as many Nigerians as possible to appreciate the value and the benefit of insurance. Insurance would have made more contributions to the development of the country if we have many more people that are aware of its benefits.
“The situation was worst in the past because government and everybody ignored insurance but I think with the new NAICOM and its Commissioner, Daniel, the industry is becoming more recognised. But there is need for more work to be done. Unfortunately for us, insurance is linked with the economy and when the economy is doing well, insurance does well. But when the economy is not doing well, the industry will suffer,” he added.
On industry prospects this year, Irukwu said operators and stakeholders are poised to see that the industry plays a more active role this year.
“If we solve the political problems that we have and if there is the political will, businesses will thrive, security will improve and more jobs will be created. This is when insurance will play its part. But this requires the effort of everybody, not just government. Everybody has to be on board to make our insurance culture more positive than it was before”.
Managing Director, Custodian and Allied Insurance Plc, Mr. Wole Oshin, said regulation has improved tremendously, adding that the introduction of the IFRS, though with its attendant challenges, is a welcome development and a positive step in the right direction.
He noted that a uniform way in the reporting of accounting procedures and operation will be achieved, while it will also increase transparency and coherence with the international standards.
Oshin said the regulator has acted in the best interest of the industry with the enforcement of the no- premium, no-cover policy, noting that the response of the insuring public has been positive. He said the insuring public that had rated the industry as unserious, now deals with industry with much seriousness
“In the coming year, I expect that the public would properly understand that the industry is working and that things will even get better. I believe we will move to a greater height this year,” he said.
For Managing Director, Anchor Insurance, Mr Muyiwa Adeduro, 2013 was a year with mixed feelings even as he felt excited that operators, including himsel,f survived the tough regulatory year.
He said: “It was a year of the adoption of IFRS and a year of Enterprise Risk Management (ERM) and so many other regulations that we need to comply with so it was a tough and learning year.
“In terms of income, the no premium, no cover initiative by NAICOM is commendable because it has helped the industry tremendously in terms of premium collection and increased our income. Although, we lost quite a number of customer that are used to paying installmentally or at the end of the year but we believe that coming 2014 will be better.”
On the economic environment, the Anchor boss said there has being a positive side in the economy.
He noted that the same cannot be said about the real sector.
“We still have a lot to grapple with on growth in the real sector. Electricity generation depleted in 2013 and quite a number of people sustained their operation throughout the year with running of generating set and buying diesel.
“But I believe that quite a number of initiatives of the NAICOM is going to rub off on the industry. The launch of microinsurance and takaful, retail sector among others are avenues we are looking at for next year. It is sad that out of over 160 million Nigerians, only few have one form of insurance or the other.
Insurance penetration is still lower than two per cent in the economy and these are the issues we should work on next year and I believe that 2014 will be a very good year for us in the sector.
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NCRIB seeks prompt claims’ settlement’
The National Insurance Commission (NAICOM) must enforce prompt settlement of claims on underwriting firms, President, the Nigerian Council of Registered Insurance Brokers (NCRIB)Ayodapo Shoderu has said. He spoke at the NCRIB members’ evening hosted by WAPIC Insurance Group, in Lagos.
He said the directive became necessary because of the importance of claims in the business.
He urged the regulator to be stringent on its stand on prompt settlement of claims, adding that claims payment remains the best advertorial to boost the industry’s image.
He said: “One of the areas of interest of our council is the need for underwriters to always pay claims expeditiously. While many underwriters are striving to strictly to the time limits for claims payment to clients, some still do err in this regard.
“Considering the place of claims payment in insurance’s image and acceptance, the Council under my leadership has taken up the matter with NAICOM during my recent visit to the Commission. We urged NAICOM to consider a directive to underwriting companies on the need for them to be prompt in the settlement of claims to clients.
“Since the sustenance of any insurance industry is its ability to pay claims promptly, our opinion is that the Commission should be more stringent on its stand or directive to insurers on claims payment, the same way the Commission frowns at brokers with regards to remission of premium.”
He said NCRIB and NAICOM would continue to partner in enforcing ethical practice, urging operators to play according to rules.
Acting Managing Director WAPIC Insurance Group, Ashish Desai, said the firm has been repositioned. He called on stakeholders to join hands to enable the industry takes its position in the economy.
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Seven firms fail to submit financial reports
Seven insurance firms out of of 59 are yet to submit their 2012 audited annual reports to the National Insurance Commission (NAICOM), eight days to the end of this financial year.
The firms are Guinea Insurance Plc, NICON Insurance, International Energy Insurance Plc, Alliance & General, Alliance & General Life Assurance Plc, Goldlink Insurance and Industrial & General Insurance Plc.
NAICOM made this known in its 2012 Submission Status Report on Insurance Companies Financial Statements.
The defaulting firms risk cancellation of their operating licences, even as they are already in breach of last June 30 deadline for submission of accounts.
Section 26 of the Insurance Act, 2003, states: “Failure to file annual return constitutes a ground for cancellation of their operating and an insurer shall be deemed to have failed to file its annual returns if the provisions of the section are not met 12 months after the end of the financial year.”
However, 22 have submitted, but are yet to get the nod of the regulator. This is even as most of them have been on the awaiting list for over three months.
They include Mutual Benefits Assurance Plc, Lasaco Assurance Plc, Crystal Life Insurance, PHB Insurance Plc, Great Nigeria Insurance, Oceanic Insurance Company Limited, Wapic Life Assuarance Ltd, Nem Insurance Plc, Lasaco Life Assurance, Linkage Assurance Plc and Mutual Benefits Life Assurance Limited.
Others are Union Assurance Limited, Nigeria Reinsurance Corporation, The Universal Insurance Company Ltd, Staco Insurance PLc, Capital Express, Standard Alliance Insurance Plc, African Alliance Insurance Plc, Anchor Insurance, Nigerian Agricultural Insurance Corporation and Unic Insurance Plc.
Meanwhile, 30 firms have complied with the International Financial Reporting Standard (IFRS).
They are Mansard Insurance Plc, ADIC Insurance, WAPIC Insurance, Consolidated Hallmark, Oasis Insurance, FBN Life Assurance, Continental Reinsurance Company Plc, AIICO Insurance Plc and Leadway Assurance Company Ltd.
Others are Crusader General Ins. Ltd, Crusader Life Ins. Ltd. UBA Metropolitan Life Ins. Company, Zenith Insurance Company Ltd, Unitrust Insurance Company Ltd, Unity Kapital Assurance Plc, Standard Allied Life Assurance, Custodian & Allied Ins. Plc, Regency Alliance Company, Royal Exchange Assurance Plc, Sovereign Trust Insurance Plc, Zenith Life Insurance Ltd, Royal Prudential Life Assurance Plc, Sterling Assurance Nigeria Ltd, Law Union & Rock Insurance Company Plc, Cornerstone Insurance Plc, Oceanic Lif e Assurance Plc (Old Mutual), Prestige Assurance Plc, FIN Insurance Ltd, Niger Insurance Plc and Equity Assurance Plc.
Commissioner for Insurance, Mr Fola Daniel has, however, criticised insurers who have not submitted their last year’s report, saying the companies might be sending a wrong signal to the industry.
The Commissioner, who spoke in Ilorin, assured that the industry is healthy, noting that the Commission would ensure that their investments erre not jeopadised.
Deputy Manager, Supervision, NAICOM, Cyprian Amadi, said insurers refused to be carried along by the Commission in the transition to the IFRS.
He accused insurance firms of submitting poorly prepared statements.
He said: “NAICOM made series of efforts to ensure that insurance companies buy into the IFRS mandate, but the indifferent attitude of these insurers frustrated all their efforts.
“We took time to train insurance companies on IFRS but they still did not get it right when they started submitting their financial statements.
“Some of them have refused to do what is right. They keep submitting accounts that the figures do not add up. Some also employ the services of consultants who only copied what was written in textbooks without any practical experience. These consultants have not been involved in practical IFRS transition as such cannot get it right and such attitude does not help anybody.”
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NAICOM inaugurates steering committee on micro-insurance
The National Insurance Commission (NAICOM) has inaugurated a 14-man steering committee made up of representatives of stakeholders across the financial services market to assist in making the micro-insurance initiative successful.
NAICOM has also said the guidelines on micro-insurance will take effect from January 1, 2014 with the objective of providing minimum standards for the conduct of micro-insurance in the country.
The committee, which is headed by the director-general of the Nigeria Insurers Association (NIA) has representatives of NAICOM, Central Bank of Nigeria, FSS2020, NIA, German Cooperation (Giz), National Health Insurance Scheme (NHIS).
Others are Small and Medium Enterprise Development Agency of Nigeria (SMEDAN), LeapAfrica, National Association of Micro Finance Banks, the Nigerian Council of Registered Insurance Brokers (NCRIB), Industrial and General Insurance Plc, Association of Registered Insurance Agents (ARIAN), Institute of Loss Adjusters of Nigeria (ILAN) and others.
The terms of reference for the committee include; developing the action plan for micro-insurance implementation in Nigeria, identifying and making recommendations to NAICOM on issues that affect micro-insurance implementation in Nigeria; make recommendation on possible improvement that can be made on regulatory and operational framework; and any other assignment as may be directed by the regulator.
Commissioner for Insurance represented by Deputy Commissioner, Finance and Admin, Mr. George Onekhena who inaugurated the committee at the NAICOM Office in Lagos tasked them to start working on the terms of reference earlier announced during the launching of the guideline.
He said the introduction of micro-insurance would help reposition insurance practice in the country, adding that it would help deepen penetration and reach to the public at the grassroots.
He called on would-be-operators to leverage the opportunities provided by technology and initiatives in the banking sector to reach out to the public, stressing that without technology, it would be difficult for the operators to operate successfully.
He also urged the committee to explore the successes recorded in other nations where the practice has been entrenched and workout measures that would make the practice successful in the country.
He said the objectives of the guidelines it is to ensure consumer protection, establish general features of micro-insurance, establish duties and responsibilities of micro-insurance operators and service providers, establish conditions for entry and exit from the micro-insurance market.
According to him, the concept of micro-insurance products is insurance products that are designed to be appropriate for the low income market in relation to cost, terms, coverage and delivery mechanism.
Chairman of the committee, promised to leave up to the confidence reposed on them, adding that the job assigned them is significant and that they would give it the seriousness required.
He said the committee would engage in studies, consultations and examine how nations that are making progress got to where they are.
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Ignorance hinders insurance growth, says Gbong Gwom Jos
The Gbong Gwom Jos Da Jacob Gyang Buba has said the apathy to the insurance industry is caused by ignorance and lack of understanding of its merits.
The monarch spoke in Jos, the Plateau State capital, when the management of the National Insurance Commission (NAICOM), led by the Commissioner for Insurance, Mr. Fola Daniel, paid him a courtesy call.
The Gbong Gwom Jos noted that the misgivings might have been due to the activities of a few operators who engaged in sharp practices in the past, and that such problems were not peculiar to the industry.
“Just like any other sector of the economy, the activities of a negligible few may have given rise to such negative perception. But that was not enough to over look the good the industry has to offer the people.
“The people will derive more value from the services of insurance as the industry grows,” the monarch said.
He appealed to operators to be more forthright in their dealings with the public to erase the negative perception of the people about the sector.
He advised NAICOM to embark on aggressive public enlightenment to educate the people on the benefits of insurance.
He urged the Commission to organise one of such campaigns in Jos.
The monarch said he would not only support the campaign, but also appeal to the state government to align with the literacy awareness drive of the commission.
Earlier, the Commissioner for Insurance had told the traditional ruler and his chiefs that the era of insurance firms collecting premiums and not paying claims was over.
He said any policyholder who believed he had been wrongly treated by an insurance company should approach the Commission for redress.
He added that NAICOM not only has the power to regulate, but also discipline any erring insurance company.
The Commissioner for Insurance also educated the monarch and his chiefs on the usefulness of insurance as a tool of risk management.
He said insurance is one of the “cheapest means of managing risk but it is largely misunderstood”.
He added that the Commission would soon embark on an awareness drive.
“We believe that one of the platforms we can use to reach the people is that of traditional rulers and that is one of the reasons we have come to visit His Royal Majesty.”
“We believe if we can get the buy-in of His Royal Majesty, we will be able to get the message across to the grassroots easily,” daniel said.
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NAICOM to blacklist auditors for connivance
The National Insurance Commission (NAICOM) may blacklist auditing firms that collude with insurance firms by passing incorrect financial statements despite clarity on the International Financial Reporting Standards (IFRS).
NAICOM Director of Supervision, Mr Nicholas Okpara gave this hint in Ilorin, disclosed that the comission would maintain a black book where the names of auditors who consistently fail to leave up to their responsibilities would be entered.
He said once this is done, the auditor will be barred from auditing financial statements insurance companies.
He said: “We are working to blacklist auditing firms who have consistently endorsed false accounts.
“It is already on the table and I think it is the right way to go because the financial statement of a company is a joint responsibility by the board and management of that company.
“The auditor that provides the quality assurance and to the extent the auditor will certify the account is more or less taking responsibility that the account contains no error and it is the true and fair view of the financial position of the company.”
He wonderd why an audited account should contain errors if the auditor had done his work diligently and professionally.
“Why should an audited account reveal such errors that are false and full of error,”he asked rhetorically.
The director said it was disturbing that some auditors of some insurance companies who ought to have discovered if there was an error and display professional roles usually shirk away from their responsibilities.
He said: “If the auditor has exercised the required due diligence and care in carrying out his work to the extent that the account still show some errors in different forms including misstatement of figures, this means that the auditor has failed to do his job, and such auditor should be sanctioned.