NAICOM, operators to fine-tune 'no premium no cover' policy

Chuks Udo Okonta


The National Insurance Commission (NAICOM) will soon be meeting with representatives of underwriters and brokers to find solutions to some challenges observed in the no premium no cover policy that commenced 1st of this month, Inspen has learnt.

Our investigations revealed that the meeting would help to resolve the growing mis-trust between underwriters and brokers on the implimentation of the policy.

It was learnt that brokers are worried that underwriters may by-pass them to provide cover for businesses rejected due to non payment of premium.

President Nigerian Council of Registered Insurance Brokers (NCRIB) Mrs Laide Osijo, said the operators have agreed with NAICOM to call the stakeholders in the industry - representatives of the brokers and underwriters to sit and chart the way forward for the implimentation of the policy.

She noted that the operators have to agree on the modalities on the implimentation of the policy, adding that during the meeting all challenges that may clogged the policy will be ironed.

She said: "These issues are foundament to the operations of brokers, for 80 per cent of insurance business in the country is done through brokers. If we follow the law and underwriters refuse to follow, the whole thing would be a mess. We would try to ensure we get the modalities as to how to go about the policy."

She lauded the decision by NAICOM to bring sanity in the industry through the policy, adding that the idea of underwriters accusing brokers of non remittance of premium will now be a thing of the past with the introduction of the policy.

"According to the Commissioner for Insurance Fola Daniel, when they were doing verification of accounts of brokers and underwriters, they observed that most of the outstanding premium that brokers were accused of, were not actually true. Some of the underwriters raised their books to cover their expenses.

"NAICOM observed the mis-representations and sanctioned the errant underwriters. Some brokers who erred by keeping premium beyond the stipulated date were also sanctioned. I am not saying that brokers are perfect, but most of the accusation by underwriters are not really true. NAICOM observed that most of the withheld premiums are receivables," she said.

She said brokers have been enjoined to report underwriters who by-pass them to take a business they rejected, stressing that the operators have all agreed to abide by the policy, which would bring sanity to the industry.