THE National Insurance Commission (NAICOM) has explained that the 32 insurance brokerage firms which recently had their licences revoked, ran short of the requirements of the Insurance Act.
The Assistant Director, Corporate Affairs of NAICOM ,Salami Rasaaq, told the Guardian Wednesday in Abuja.
He said NAICOM’s action was based on subsisting law. "What the law says is that you (insurance brokers) are given a period of one year to renew your licence, which is 12 months and at the end of the one year, if you did not renew your licence, then you will be given a grace of three months and if at the end of the three months you did not renew it then it means you can’t do insurance business.
"Now is it NAICOM that revoked it or the law?."
He also explained that if those insurance brokers that their licences were withdrawn wish to re-start insurance business again, they will register with a new name.
"If at the end of the day, they still wish to do insurance business, then they have to go and register with a new name following the stipulated guideline."
Although, the names of the 32 affected brokers were not disclosed, our correspondent gathered that some of them had not been able to renew their licences.
Meanwhile, the online Nigerianewsreel , reported that the the President, Nigerian Council of Registered Insurance Brokers, Mrs. Laide Osijo, said that any brokerage firm that did not renew its licence after three months, would be presumed to be out of business.
According to her, most of those affected had failed to meet the necessary renewal process.
Osijo stressed the relevance of the insurance brokers as professional intermediaries operating between the insured and the insurer.
According to her, their duties include rendering insurance advisory services to clients on the type of insurance to undertake, with whom, and at the best rates.
She said: "The broker plays a crucial role in the risk management chain because he represents his clients with the underwriters or the insured not only in the placement of risks but also in the pursuit of claims when a loss arises."
Source: The Guardian
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