Why insurance bill is delayed - Daniel

Chuks Udo Okonta

The  Commissioner for Insurance Fola Daniel, has attributed the delay in having a new Insurance Act to regulate the industry to frequent changes of Ministers of Finance. 

Daniel in an interview with a daily newspaper, said since he assumed office as commissioner, there has been musical changes in the Federal Ministry of Finance, stressing that he has worked with a handful of ministers within this period and because the continuity has not been there not much progress has been made with the bill.

"Since I came into office there has been musical changes in the Federal Ministry of Finance. I have so far worked with a handful of ministers within this period and because the continuity has not been there not much progress has been made with the bill. 

"Unfortunately that bill has not made it to the National Assembly but we are going to urge the incoming government to give priority to the passage of that bill. I am very, very enthusiastic about it and I am very confident that the new government will look at it. I think it will be in the front burner of the new administration. So we are going to have a new Insurance Act," he said.

He dismissed the notion that the 2003 Insurance Act is obsolete, stressing that the new bill was initiated to make the industry's Act more developmental; progressive and user-friendly.

"I don’t think it is appropriate to say that the 2003 Insurance Act is obsolete, no. What we are trying to do with the new bill is to make it more developmental, more progressive, and more user-friendly. 

"Under this 2003 Insurance Act the regulator is sweating. If I want to punish you, I have to write you to tell me why I should not punish you, I give fourteen days, then wisely you delay and probably you send the reply on that fourteenth day which is a Friday, I have lost three weeks.  

"And if I want to intervene in a company, in most cases we need not write to inform them. It is not flexible legislation like the banking legislation. The Security and Exchange Commission (SEC) legislation is very flexible and it enables the regulator to take proactive action so that you do not take action when the die is cast," he added.

Daniel noted that proposed bill when passed will give the regulator more flexibility in regulating the industry.