Wednesday 22 April 2015

Why insurance firms budget for fine: NICON, Unic to pay N791,000 for 2013 accounts defaults

Chuks Udo Okonta 

NICON Insurance plc and Unic Insurance Plc are expected to pay N395,500 each amounting to N791,000 for failing to submit their 2013 financial account between July 2014 and April 2015. This has further revealed why most firms contravene the law as the amount is considered insignificant to them.

According to a member of staff of the National Insurance Commission (NAICOM), the commission has observed that most firms made adequate provisions for fines in their yearly budget, making it convenient for them to contravene stipulated laws.

The Insurance Act gives Insurance firms up to June 30 to submit their previous year accounts or pay a daily fine of N5,000.

According to NAICOM  Alliance and General Insurance; Alliance and General Life Assurance and Spring Life Assurance Plc are yet to submit their 2012 accounts.

Those that are yet to submitted their 2013 financials are: Goldlink Insurance Plc; NICON Insurance Plc; Unic Insurance Plc; Alliance and General Insurance; Alliance and General Life Assurance and Spring Life Assurance Plc.

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