21 February 2014

Nigeria: Insurance Firms Improve Due to Compulsory Policy

The balance sheets of insurance companies operating in Nigeria have recorded significant improvement due to the introduction of the compulsory insurance policies in some sectors of the economy, the Commissioner for Insurance, Mr. Fola Daniel, has said.

Speaking recently in Lagos, Daniel said the policies introduced by the National Insurance Commission (NAICOM) for buildings under construction have enhanced the turnover of the insurance companies.

According to him, the commission resolved to take insurance where it is needed in order to grow the sector and reduce the risk in the economy.

The five major compulsory insurance policies include Indemnity Insurance under National Health Insurance Scheme 1999, Builder's Liability Insurance under Section 64 of Insurance Act 2003, Health Care Professional and Occupiers Liability Insurance under Section 65 of Insurance Act 2003. Others are statutory Group Life Insurance under Section 3(2)(a)(b) and 9(3) of Pension Reform Act 2004 and third Party Motor Insurance under Section 68 of Insurance Act 2003.

Daniel said the commission is working to ensure value addition on insurance cover in order to win public confidence.

He said all the initiatives by the commission is to entrench consumer confidence.

"We also recognized the fact that even if all the insurance companies have all the cash, you might still need to keep some people out of the old habits, so now that there is money, what do we do? We need to reinvigorate claims by the complaints bureau which is dedicated to take complains from members of the public."

He said the commission is determined to promptly attend to complaints from customers.

On the payment of premium by government agencies, Daniel said the agencies, unlike before, are paying their premium as and when due.


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