Wednesday 31 December 2014

Eight Insurers Fail to Submit 2013 Accounts to NAICOM


Daily Times
Less than 24 hours to the end of the year, eight insurance companies are yet to submit their 2013 International Financial Reporting Standards (IFRS) based accounts to the National Insurance Commission (NAICOM), the commission disclosed.
Just like the previous year when eight insurance companies failed to submit their 2012 IFRS based accounts to NAICOM after the end of 2013, seven of the affected insurance companies were equally found wanting in this regard in 2014.
The eight defaulting companies in 2013 were: Alliance & General Insurance Company Limited, Alliance & General Insurance Life Assurance, Goldlink Insurance Plc, Industrial & General Insurance Plc, Investment & Allied Assurance Company, International Energy Insurance Plc, NICON Insurance Ltd and Spring Life Assurance Plc.
Again, the eight defaulting insurers in 2014 are Alliance & General Insurance, Alliance & General Life Assurance, Goldlink Insurance Plc, Industrial & General Insurance Plc, Investment & Allied Insurance Plc, NICON Insurance Ltd, Spring Life Assurance Plc and UNIC Insurance Plc.
This development took place in spite of the fact that section 26(1) of the Insurance Act 2003 stipulates that every insurer shall not later than 30th June of each year submit to NAICOM, a balance sheet duly audited showing the financial position of the insurer and its subsidiaries at the close of the preceding year together with a copy of the relevant profit and loss account which the insurer is to present to its shareholders at its annual general meeting.
The affected insurers have been paying a fine of N5, 000 per day for each day of default.
In view of the fact that section 26(3) of the Insurance Act stipulates a fine of N5, 000 per day for each day of default, NAICOM believes this has not deterred insurers from failure to render annual returns as expected. The commission was therefore considering more stringent penalty in the proposed amendment to the Insurance Act.
As at the time of filing this report, out of the 59 insurance companies operating in the country, 46 have got approval for their 2013 financial reports.
Apart from the eight insurance outfits that have failed to submit their 2013 accounts to the commission in contravention of the law, the accounts submitted by five companies were queried by the commission and responses were being awaited. The affected companies are Universal Insurance Company Ltd, UnityKapital Assurance Plc, Great Nigeria Insurance, African Alliance Insurance and International Energy Insurance Plc.

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