The National Insurance Â Â Â Commission (NAICOM) has suspended UTIB Insurance Brokers Limited over withholding of N314m premium paid by National Identity Manage-ment Commission.
The insurance regulatory body premium placed a six-month suspension on the broker with effect from August 20, 2009 to February next year.
NAICOM, in a letter dated August 31, 2009 titled, â€˜Suspension of UTIB Insurance Brokers Limitedâ€™ read a piece. â€œIn accordance with the power conferred on the Commission by the provisions of sections 39 and 41 of the Insurance Act 2003, UTIB Insurance Brokers Limited has been suspended from operating and practicing insurance broking for the period of six (6) months effective from August 20th, 2009â€
The letter signed by the Deputy Commissioner for Insurance (Technical), Mallam Muhammed Husseini, and sent to all insurance companies in the country through the Nigerian Insurers Association (NIA) read further,
â€œThis is sequel to the report of an investigation which confirmed that the broker engaged in conduct that is inconsistent with sound insurance practice as indicated hereunder:
â€œAs the lead broker for 2008/2009 insurance programme for National Identity Management Commission, the broker received premium for the cover and failed to disburse the amount in whole to the underwriters within 30 days as required by the provision of Section 41 of Insurance Actâ€™
It continues, â€œThe broker granted rebate/discount on commission due to it and led other brokers and the underwriting co-insurers to forgo outstanding premium due to them on the insurance programmeâ€.
â€œThe broker also failed to effectively disseminate information about the changes in the period of cover to other participating brokers and the co-insurersâ€.
At this juncture, the Commission warned insurance companies against doing business with the broker in the next six months.
â€œYou are advised to avoid engaging in any transactions with the broker during the period of suspensionâ€.