Claims payment best tool for growth –Daniel

Claims payment best tool for growth –Daniel

Chuks Udo Okonta

The Commissioner for Insurance Fola Daniel has said prompt claims settlement remains the best instrument for insurance awareness and growth.

He told Inspen that the National Insurance Commission (NAICOM) will continue to ensure that operators live up to their claims responsibility, adding that the commission had received 86 claims complaints this year, which 52 have been resolved and 34 are in court.

Daniel noted that operators who consistently fail to settle discharged claims promptly would loss their license, adding that insurers have been mandate to henceforth administer claims in accordance to standard insurance practice and it should be considered as a sole responsibility.

He stated that discharged claims should be settled immediately as prescribed by the Insurance Act 2003, adding that failure to do so would attract sanctions as stipulated by section 70 (2) of the Insurance Act 2003

He said: “Failure to settle discharged claims shall attract sanctions as stipulated by Section 7o (2) of the Insurance Act 2003. Consistent failure to settle discharged claims promptly may lead to the withdrawal of the licence of the insurer as stipulated by section 8 (1) (m) of the Insurance Act 2003 and the insurer may be would up by the commission in accordance with the provisions of section8 and 32 (1) (b) of the Insurance Act 2003.

“No foreign loss adjuster shall attend to any claims in Nigeria oil and gas sector without the express permission of the commission on such terms and conditions as may be stipulated in the approval. Similarly, the foreign loss adjuster shall handle the assignment with and in collaboration with at least one loss adjusters of registered under the Insurance Act, 2003.”  

Daniel said the NAICOM views failure or undue delay of claims settlement as an aberration.

He said individuals, corporate bodies or government establishments that have genuine unsettled claims against any insurance company are advised to lay the complaint to NAICOM.

"The consumer protection unit of the commission has been properly positioned to handle such complaints with dispatch. Any defaulting company will be required to pay such claims. Non payment of genuine claims is enough ground to suspend or cancel the operational certificate of a registered insurance company.

"This is why NAICOM advises policy holders to ensure that they obtain their policies from NAICOM-registered insurance companies only. A policy obtained from a fake insurance institution has no liability attached an no compensation can be received if such complaints are made to the commission," Daniel added.