NAICOM to validate debts in insurers' accounts
Chuks Udo Okonta
The National Insurance Commission (NAICOM) would soon commence the validation of debts that are stated in the financial accounts of insurance companies to ascertain their authenticity Inspen has learnt.
Deputy Commissioner Finance and Administration NAICOM, George Onekhena, who confirmed this, said the commission is poised to remove everything that is fictitious in the books of insurers.
He noted that the commission has received volume of books from the Nigerian Council of Registered Insurance Brokers (NCRIB) indicating that most debts in the books of underwriters are not real.
He said the commission would now adhere strictly to No Premium No Cover policy to stem the claims of withholding or unpaid premium by underwriters.
He said: "NAICOM would soon commence the validation of debts in the books of companies to ascertain the true position of the debts. 2012 is a year of reality; we are going to remove everything that is fictitious in companies’ books.
"Though some people believe that the No premium No Cover policy would not work, our belief, is that it would work and we are going to adhere strictly to the policy to wipe debts in the books of underwriters."
He noted that the commission would continue to engage underwriters to ensure that they nip all the challenges that they are having as regards the cleaning of their books for effective transition to International Financial Reporting Standard.
He said many companies have been sanctioned for infraction, adding that while the commission sanctions firms, it would also that the industry is protected.
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