NCRIB to NAICOM: Review The Regime Of Penalties Imposed On Erring Brokers

Posted by African Examiner Business News, Insurance Sunday, November 10th, 2013

Kayode Adelowokan, Lagos

The Nigerian Council of Registered Insurance Brokers (NCRIB) has appealed to the National Insurance Commission (NICOM) to review the regime of penalties imposed on erring brokers.

President of the Nigerian Council of Registered Insurance Brokers (NCRIB), Mr Ayodapo Shoderu,

The Council president, Mr. Ayodapo Shoderu, said this during a courtesy visit to the Commissioner for Insurance, Mr Fola Daniel, in Abuja.

Shoderu said there is need for the commission to consider that at least 80 per cent of brokers are small in sizes and that when heavy penalty is placed on them, it may drive them completely into extinction.

He stressed that the situation can be counter-productive to the growth efforts of the industry pioneered by NAICOM.

Meanwhile, about 200 brokers recently caught by the Commission to have violated the No Premium, No cover policy escaped the wrath of the industry regulator.

Also, NCRIB boss urged NAICOM to send a strong directive to underwriting companies on the need for them to be prompt in the settlement of claims to clients.

He implore NAICOM to consider a strong directive to underwriting companies on the need for them to be prompt in the settlement of claims to clients.

“Since the sustenance of any insurance industry is its ability to pay claims promptly, the Commission should be more stringent on its stand or directive to Insurers on claims payment; the same way the Commission frowns at Brokers with regards to remission of premium.” He said.

Mr. Ayodapo Shoderu also said, “the illegal acts being perpetrated by some Underwriters who wholly own or have substantial interest in insurance broking firms. It is regrettable that in spite of the position of the law on this, many Underwriters still flagrantly disobey the law to the detriment of the industry. Since the matter is a legal or regulatory issue, NAICOM could direct greater attention to the issue for the better adherence to the overall benefit of our practice.”

The president, Nigerian Council of Registered Insurance Brokers (NCRIB), Mr. Ayodapo Shoderu, however reiterated the readiness of his administration to keep a harmonious relationship with all the strategic stakeholders in the insurance industry, of which NAICOM is a frontline player.

Since the progress of our industry requires collective efforts by all stakeholders, he said his tenure will not compromise its relationship with the Commission and other bodies