Operators Charge NAICOM on Directives for Prompt Claim Settlement

Posted by African Examiner Business News Thursday, December 19th, 2013

Kayode Adelowokan, Lagos

Owing to the challenges of claims settlement combating the Nigeria insurance industry, the Nigerian Council of Registered Insurance Brokers (NCRIB) has called on the National Insurance Commission (NAICOM) to issue a directive to underwriting companies on the need for prompt claims settlement to clients.

Deputy President of the Nigerian Council of Registered Insurance Brokers (NCRIB), Mr. E. K. Okunoren; NCRIB President, Mr. Ayodapo Shoderu; Acting Managing Director/CEO, Wapic Insurance Plc, Mr. Ashish Desai, and Executive Director, Technical, Wapic Insurance Plc, Mr. Folusho Aliyu, at the Wapic sponsored NCRIB members evening held in Lagos on Tuesday, December 17, 2013.

The council President, Mr. Ayodapo Shoderu, said this at the NCRIB members’ evening hosted by WAPIC Insurance plc, in Lagos.

Shoderu noted that the directive has become necessary due to the importance of claims settlement as a means to gain respect of Nigerian and strengthen the insurance business in the country.

He however called on the regulator to be stringent on its stand on prompt settlement of claims, adding that claims payment remains the best advertorial to boost the industry’s image.

He said: “One of the areas of interest of our council is the need for underwriters to always pay claims expeditiously. Whilst many underwriters are striving to adhere strictly to the time limits for claims payment to clients, some still do err in this regard.

“Considering the place claims payment in insurance image and acceptance, the council under my leadership has taken up the matter with NAICOM during my recent visit to the commission. We urged NAICOM to consider a 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, our opinion is that 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.”

The council’s 17th president therefore assured that NCRIB and NAICOM will continue to collaborate in enforcing ethical practice in the industry, and urged operators to play according to rules.

Speaking at the brokers’ quarterly members’ evening, the acting Managing Director, Wapic Insurance plc, Mr. Ashish Desai, admitted that though the insurance penetration in the country is still low compare to other countries in the world but called on industry players on the needs to be proactive and strive to enhance trust of prospective policy holders.

Desai averred that operators in the country need to continue to invest in its employees for capacity building and industry growth.

The Wapic boss also expressed believe that if operators can meet the needs of its customers as at when due, the industry will be a healthy place for all players.

Mr. Ashish Desai mentioned that the company has been repositioned for improved performance. He called on all stakeholders to join hands together to enable the industry takes its rightful position in the scheme of things in the economy.