Friday, 31 May 2013

FG owes insurers N3.56b group life premium



Chuks Udo Okonta

Insurance companies that underwrote the Federal Government’s last year’s group life policy are yet to be paid about N3.56 billion, Inspen has learnt.

A broker who pleaded not to be named, said the government has paid about N5.13 billion which is 59 per cent out of the total sum of N8.7 billion, leaving N3.56 billion – 41 percent unpaid.

 President Nigerian Council of Registered Insurance Brokers (NCRIB) Mrs Laide Osijo, at the council’s members evening in Lagos, has called on the government to settle the outstanding payment, adding that the delay or nonpayment of the outstanding is unhealthy for the industry’s development.

She said: "I want to appeal to the Federal Government for the release of outstanding premium on group life for the year 2012. As it stands, only 41 per cent of the premium has been paid remaining 59 per cent to be paid.

"This situation has made many insurance companies to discountenance claims under the year in review of the now existent No Premium No Cover. This, as we are all aware, is to the displeasure of some beneficiaries especially to those who died in active service.

"The impression many of them have is that the insurance industry is insensitive to their plights, a situation that creates serious image smear for the industry."

She called on the government to assist the industry to avoid further accumulation of unpaid premiums and claims, adding that such could negate the new premium collection system.

Osijo said the initial apprehension on the workability of the no premium no cover policy is gradually being laid to rest as brokers and underwriters now testify of the gains from the initiative.

Managing Director LASACO Assurance Olusola Ladipo-Ajayi, said the nonpayment of the premium is inimical to the industry’s growth. He maintained that there is the need for a review of the premium adding that the present group life premium is undervalued.

 

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