By Favour Nnabugwu
National Insurance Commission (NAICOM) is presently in talks with the Nigerian Council of Registered Insurance Brokers (NCRIB) over the bidding fees that brokers and insurers were forced to pay by Independent National Electoral Commission (INEC) and the 8 per cent commission, the regulatory body set for brokers.

The commission and the broking arm of the insurance industry are mapping out ways of making government institutions in the country to understand that the sector is only rendering services to them not as contractors but service providers and should therefore not be made to pay any money to render their services to the nation.

Section 9(3) of the Pension Reform Act 2004 stipulates that “In addition to the rates specified in sub-section (1) of this section, employers shall maintain life insurance policy in favour of the employee for a minimum of three times the annual total emolument of the employee.

“In line with section 53(1) of the Insurance Act 2003, commission payable to an insurance agent, broker or any intermediary on group life assurance business shall not exceed 8 per cent of the premium,” says NAICOM. Section 53 (1) of the Insurance Act states that no insurer shall pay by way of commission to an insurance agent, insurance broker or any other intermediary an amount exceeding 12.5 per centum of the premium in respect of motor insurance business; 15 per centum in respect of workmen’s compensation; or 20 per centum of the premium in respect of any other subdivision of general business not being one mentioned here.

The life insurance policy is to be effected through the purchase of a life policy issued by a Nigerian registered insurance company, licensed and authorised to conduct life insurance business by NAICOM under the Insurance Act 2003. NCRIB rather than go to court as the body used to in the past, resolved to dialogue every pending issue with the commission without arousing chaos in the sector.