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| Shoderu |
Chuks Udo Okonta
The Nigerian Council of
Registered Insurance Brokers (NCRIB) in a bid to ensure sanity and
professionalisation of insurance broking practice has solicited the
understanding and support of Corporate Affairs Commission (CAC) in the
incorporation of new companies wishing to go into insurance broking.
The Council encouraged
CAC to henceforth request for evidence of professional qualification of the
Chartered Insurance Institute of Nigeria (CIIN) or its equivalent, from at
least a Director of prospective companies as required for companies going into
other professional practices.
This position of the
Council was made known during a courtesy visit of a delegation of the Nigerian
Council of Registered Insurance Brokers (NCRIB) led by its President, Ayodapo
Shoderu to the Commission’s office in Abuja.
Shoderu explained that
the request would further ensure greater professionalization and improve the
quality of service delivery by the companies.
The NCRIB President who
applauded the CAC for ensuring effective corporate governance in business
through its efficient and dispassionate approach in the registration and
incorporation of business institutions in Nigeria, particularly under the
management of the incumbent Registrar General, Bello Mahmud, stressed the need
to imbibe the position of the Council on registration of new firms.
While intimating the Registrar and his team with the
workings and importance of Insurance brokers in relations to Nigeria economy,
Shoderu explained that NCRIB, the umbrella body of all Registered Insurance
Brokers in Nigeria, with over 500 members operating within the nooks and
crannies of Nigeria should be allowed to play its pivotal role in sustaining
the nation’s economy.
According to him, Chartered by the NCRIB Act No. 21 of
2003, the Council is the only recognized body regulating insurance brokers in
the country, a role it has been playing most creditably till date.
Speaking further, the President noted that NCRIB Act 2003
prescribes a minimum working capital of N5million for insurance brokers. “It is
the desire of our Council that this provision of the law should be taken into
cognizance and given full effect when incorporating insurance brokerage
companies by the Commission. Our Council has continued to experience a
situation where insurance broking companies are registered with less than the
prescribed minimum share capital only for our Council to insist that they
increase their working capital to meet up with the registration requirement of
N5million working capital prescribed by the law.
In his response, Mahmud
assured the Council of the Commission’s commitment to adhere to all necessary
laws and regulations that spelt out the basic minimum requirement before
registration of any broking firm henceforth. He immediately charged his management
team to always pay attention to details as enumerated by the NCRIB President.
While appreciating the
Council for the Courtesy visit, Mahmud enjoined the industry to reconsider its
stand on implementation of ‘No Premium, No Cover’ policy, stressing that many
organizations have found it difficult to meet up with their insurance
obligations. According to him, many insured public still find it difficult to
get their claims when there is need for it.
However, Shoderu
explained that the prayer of the Commission’s on the amendment to the
implementation of “No Premium, No Cover” was not within the jurisdiction of the
Council, stressing that Insurance Act prohibit the practice. He further
explained that with the implementation of the policy, no underwriter could hold
on to genuine claims.
“No underwriter will
provide cover without payment of premium and no Broker can hold to premium
beyond a stipulated time. The onus is on brokers to help their clients pursue
genuine claims when the need arises. That is one of the reasons while we
clamour for involvement of duly registered insurance brokers while transacting
insurance business,” he said.
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