Daily Independent
By Sola Alabadan
The National Insurance Commission (NAICOM) has revealed that both Industrial & General Insurance Plc (IGI) and NICON Insurance Limited did not file quarterly financial returns with the commission in 2014.
While all insurers and reinsurers are required to, within 30 days from the end of each quarter, file financial returns as at the end of the quarter with NAICOM, failure to render quarterly returns constitutes a ground for cancellation of insurers licence in line with section 8 of the Insurance Act 2003.
NAICOM also informed that out of the 59 insurance companies in the market, eight companies were yet to submit their financial returns for the third quarter of 2014, to the commission.
The defaulting insurance companies are Anchor Insurance Company, Great Nigeria Insurance, Industrial & General Insurance Plc (IGI), Mutual Benefits Life Assurance Ltd, NICON Insurance Limited, Staco Insurance Plc, Universal Insurance Company Ltd, and UNIC Insurance Plc.
The insurance regulator, however, pointed out that five firms are under regulatory intervention. The affected companies are Alliance & General Insurance, Alliance & General Life Assurance, Goldlink Insurance Plc, Investment & Allied Insurance Plc and Spring Life Assurance Plc.
NAICOM further confirmed that 46 other insurance firms operating in the country filed their first, second and third quarter returns with the commission.
As all insurers and reinsurers are required to, within 30 days from the end of each quarter, file financial returns as at the end of the quarter with NAICOM, late filing of quarterly returns attracts a fine of N5000 per day for each day of default.
An insurer who refuses to submit to NAICOM on or before the end of the next quarter is deemed to have failed to render quarterly returns.
All contraventions on which penalties have been imposed in any accounting year are required to be included in the audited annual accounts to be presented at the annual general meeting.
In case of general insurers, the quarterly returns are expected to include: statement of premium transaction by class of business, statement of commission by class of business, statement of claims by class of business, statement of management expenses, quarterly balance sheet, revenue account, profit and loss account.
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