NAICOM May Proscribe 90 Days Deadline for Claims Settlement

ThisDay

By Ebere Nwoji

The National Insurance Commission (NAICOM) in its on going effort to institute the regime of speedy settlement of genuine claims among insurance industry operators said it may no longer tolerate the poor attitude of insurance managers waiting for expiration of the maximum 90 days stipulated by the law for settlement of genuine claims.

In place of the 90 days maximum period for settlement of genuine claims as stipulated by the law, the commission wants operators to settle all genuine claims within 48 hours.

The Commissioner for Insurance Mr Fola Daniel, outlining efforts of the commission to reposition the insurance industry and improve on the confidence of the insuring public to the industry said there is no more room for delay on payment of genuine claims util the expiration of the maximum number of days stipulated by the law.

He said insurance firms still indulging in acts that will make the commission withdraw their licences.

"We are not satisfied until we achieve zero tolerance for non settlement of claims.There is one unique case that was reported to us recently. A discharge voucher was granted two months ago and when we sent a query to that company, somebody signed for the boss at the top, saying that there is a provision that said you can settle claims maximum of 90 days .It is maximum and the guy was saying as long as 90 days is stated, we have committed no offense and we said okay, that 90 days is revoked, settle this claim within 48 hours if you don't, we will suspend your license," the commissioner stated.

Also, the Director Inspectorate of NAICOM, Thompson Barineka, told Journalists in Benin, Edo State that the commission was putting up a measure that would enable it follow-up all claims to the point of payment. Recently, the commission had given one month notice to all insurance companies to furnish it with all outstanding claims in their books. The commission disclosed through circular tiled: "circular to all insurance companies: Outstanding claims NAICOM/CB/ ASA/RIC/-049" dated 20th January, 2015 and signed by Deputy Commissioner for Insurance Technical, Mr. Mohammed Kari, that it was determined to bring to an end the issue of unpaid claims, which is negatively impacting its quest to deepen insurance penetration and trust in the country.

The circular thus reads: "Consequently you are required; within four (4) weeks from the date of this circular; to furnish the commission with all outstanding claims in the registrar of your company, inclusive of the following information: Name of insured/claimant; Policy number; Claim number; date of loss/accident; date of report; Quantum/estimate and reasons why the claim is still outstanding. According to the commission's directive, the information should be entered to www.naicom.gov.ng/outstandings ; and a signed hard copy sent to the office of the Commissioner for Insurance."

The circular further said that the commission reserve the right to verify all information supplied and any variance found will not be condoled and would attract full regulatory sanctions as provided by law.