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NAICOM arbitrates transfer of Life portfolios, merger & acquisition, three others

By Patience Saghana
National Insurance Commission has in the first quarter of this year adjudicated on five major complaints among which are complaints on transfer of life portfolios, merger & acquisition. The others are complaints on bonds, pensions and education endowment products

Adjudication meeting on the complaints was held at the commission Lagos Control office on early this year to resolve issues lodged against five insurance companies by Prosperfunds Limited concerning bonds.

Prosperfunds complained that five insurance institutions issued their guarantee bonds in various sums of money in their favour and when there was a default, the insurance companies refused to settle the claims with incidental interests.

But for the intervention of the Commission, the issue between the complainant and Crusader General Insurance Limited was resolved and a cheque of N389,021.78 had since been issued to the complainant as full and final settlement.

However, three out of the remaining four of the other cases are still pending at the instance of Prosperfunds whilst Investment & Allied Assurance, arose from an attempted acquisition of First Chartered Insurance Company Limited by it. When the complaint was forwarded to Investment & Allied Assurance it responded that the acquisition has not been approved by the regulators.

Meanwhile, the commission resolved a total of 15 cases involving 174 claims in the first quarter of 2010 with N182.3million claims paid.

total number of 142 correspondences were received between January and March 2010. Out of these correspondences 72 were fresh complaints. This is not a far departure from the 74 complaints received during the first quarter of last year.


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