Chuks Udo Okonta
The Lagos State Governor Babatunde Raji Fashola, has said insurance
operators have no legal right to call for outstanding premium as such is not provided
for in the industry’s law.
The Governor, who spoke at the State’s Council Meeting, said
since Insurance Act stipulates that “the receipt of an insurance premium shall be a condition precedent to a
valid contract of insurance and there shall be no cover in respect of an
insurance risk unless the premium is paid in advance”, therefore, there is no
basis for outstanding premium, as insurance business is only contracted when
premium is paid.
He called on insurers to comply with their laws and be proactive, so as to
maximise the enormous insurance potentials in the country.
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