No hiding place for errant operators, says NAICOM

No hiding place for errant operators, says NAICOM

Chuks Udo Okonta

The National Insurance Commission (NAICOM) would continue to expose and sanction errant operators to serve as deterrent to others, the Commissioner for Insurance Fola Daniel, has said.

He told Inspen that the commission would never sweep activities of errant operators under the carpet or shield them from sanctions, adding sanctions meted on errant operators are largely remedial to ensure safety of policy holders and shareholders.

Daniel said NAICOM gives priority to the protection of the industry in imposing sanctions, adding that it would not be deterred by the out cry of highhandedness by some operators.    

He said: “I believe the public would want NAICOM to be like Central Bank of Nigeria (CBN) as regards sanctions. The method of central bank is not a cap that fits all. It is not a medication that cures all ailments. The approach of central bank has its own merits, which is do it publicly let Nigerians be aware of what is happening. Of cause, the central bank was confronted with a different scenario that needed the remedy they applied.

“The problem of the insurance industry is not exactly the same. So, we may not be able to borrow that medication to cure a different ailment. When you have diarrhoea you have to take drastic medication to stop it, because it could embarrass you. Whereas, somebody who has headache would take panadol, two of them are medications, but are intended for different purposes. And the effects look different. So, we salute the central bank for what they are doing, but I want to confirm to you that from time to time, we sanction insurance operators and if it is important for the public to know we let them know.

“Our sanctions are largely remedial. What is upper most in sanctioning a company is the protection of policy holders. If I sanction an insurance company and put it on the papers of newspaper, without obtaining a remedy, how does that help the policyholder?  But if I can effectively sanction an operator and the interest of policy holder is fully served, that mean we are doing the right thing. Let the central bank continue to do what it is doing, we have a different problems and different approaches in resolving the problems.

“I assure you that we are not sweeping anything under the carpet or shielding any operator. As a matter of fact, for some months now, I think there has be shout and cry from the industry about our sanctions we have given to errant operators. We are acting as it become expedient and appropriate; we are not going to mimic any regulator so that the public will say we are doing something that would not be necessary.”

It would be recalled that the commission, early in the year dropped its harmer on brokering firms that failed to comply with the industry’s rules. It urged the public not to transact businesses with them until they are let lose of its hook. The affected firms are, ADS Insurance Brokers Limited,  APL Insurance Brokers Limited, ASO Solid Insurance Limited, Bambi Insurance Broker Limited, CIB Insurance Broker Limited, Cachet Insurance Brokers Limited, Clown Field Royal Insurance Limited, Cobal Insurance Brokers, Col-Val Insurance Brokers, Commercial Marine Brokers, Consolidated Insurance Brokers, Corporate Trust Insurance Limited, Delight Insurance Brokers Limited, Fair Deal Insurance Limited, First Cover Master Broker Limited, Goodgate Insurance Limited, Hope equity & Trust Brokers Limited, I B P C Insurance Brokers Limited, Inland Insurance Brokers Limited, Ma Aji Insurance Brokers Limited, Mark of Security Insurance Limited, Mbc Insurance Brokers Limited, Mecartend Insurance Brokers Limited, Megatech Insurance Brokers Limited, Multi-Lateral Insurance Brokers, Risk Guard Insurance Broker Limited, Royal Trust Insurance Brokers Limited, Shield Insurance Broker Limited, Tulip Insurance Brokers Limited, Uni-Chartered Insurance Brokers, Unimag Insurance and United Modern Insurance Brokers.

The commission’s harmer also dropped on Alliance & General Insurance (A&G) Plc, A&G Life and Fidelity Bond for infractions ranging from non-rendition of accounts; misrepresentation and non-disclosure of liabilities; non-remittance of premiums and commissions, and corporate governance abuses.

Last week, NAICOM also took over the management of Goldlink Insurance Plc. It appointed an interim board, which will oversees its affairs for six months. James Ayo, was made the Chairman while Gbolahan Olutayo, Managing Director and Adeyinka Olutungase, Chief Finance Officer. Other members include Ambassador Umar Damagun, Alhaji Sashe Dabana, Prof. Chioma Kanu Agomo and Mallam Abubakar Sadiq Mijinyawa (independent director).

Daniel said NAICOM received 86 claims complaints this year, out of which 52 have been resolved and the claims about to be paid. He said the protection of policyholders’ interest will remain paramount during his administration.