Brokers seek payment of 59% outstanding group life premium

Chuks Udo Okonta

Insurance brokers have called on the Federal Government to pay the outstanding 59 per cent of last year's group life premium, having paid only about N1 billion of the over N3 billion premium.

President Nigerian Council of Registered Insurance Brokers (NCRIB) Mrs Laide Osijo, who disclosed this at the council's members evening in Lagos, said the government has only paid 41 per cent of the total group life premium for last year, stressing that the non payment of the outstanding is unhealthy for the insurance industry.

She said: "I want to appeal to the Federal Government for the release of outstanding premium on group life for the year 2012. As it stands, only 41 per cent of the premium has been paid remaining 59 per cent to be paid.

"This situation has made many insurance companies to discountenance claims under the year in review of the now existent No Premium No Cover. This, as we are all aware, is to the displeasure of some beneficiaries especially to those who died in active service.

"The impression many of them have is that the insurance industry is insensitive to their plights, a situation that creates serious image smear for the industry."

She called on the government to assist the industry to avoid further accumulation of unpaid premiums and claims, adding that such could negates the new premium collection system.

Osijo said the initial apprehension on the workability of the no premium no cover policy is gradually being laid to rest as brokers and underwriters now testify of the gains from the initiative.

Managing Director LASACO Assurance Olusola Ladipo-Ajayi, lauded the giant stride of the NCRIB and promised the company's commitment to continue to work with brokers to deepen the industry.

He said the company will continue to esteen professionalism and sustain its achievements, adding that the firm presently is the leading in special risk businesses and remains the only underwriting firm in the country with ISO certificate.