Chuks Udo Okonta
The Chairman, Nigerian Insurers Association (NIA), Godwin Wiggle, has said there is no justification for an increase on the fees charged by loss adjusters as underwriters presently bear all their expenses while undertaking their duties.
He disclosed this at a media parley in Lagos, stating that apart from the fees, there is another element of expenses, that is borne by the insurance companies.
"I still have not seen the justification for an increase in the fees. Their services are classified in a range and the range is convenient for them to carry out their exercises. Apart from the fees, there is another element of expenses, that is borne by the insurance companies.
"For every cost they incur in the cause of adjustment, that fee is 100 per cent passed to the insurance companies. The question I ask every day is where is this increase? Are they saying that their expenses multiply by inflation should now be paid to them? The fee is a fixed percentage the more the value of the claim, the more their income is. If we want to even do a statistics of what loss adjusters have earned in the last five years, compared to what they earned in the last 10 years, you would be shocked at the numbers, so, there is still no justification for that increase," he said.
He said there is no need for rancour between underwriters and loss adjusters as the laws have stipulated how they should operate.
"Their expenses are borne by the underwriting companies, so what is the fuss about? We that pay the fees do not increase our premium, instead, what is happening is that our premium is dropping, if we want to examine it that same way as our premium is dropping, then their rates should also drop. But, we have resolved to leave the rate just as it has been," he added.
No comments:
Post a Comment