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Insurance operators to resolve controversy surrounding commission rate

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President of the Nigerian Council of Registered Insurance Brokers, NCRIB, Mrs. Laide Osijo has said the actual rate chargeable as commission for the Compulsory Group Life Policy for federal government civil servants which has been under controversy for some time now will be finalised before the end of April.

Addressing pressmen during a media parley in Lagos last week, Osijo said that the NCRIB, Nigerian Insurers Association, NIA, as well as the National Insurance Commission, NAICOM, are all working together to see that the controversy is resolved.

It will be recalled that underwriters under the auspices of the Nigerian Insurers Association, NIA, want the commission rate to be pegged at eight per cent while the insurance brokers under the auspices of the NCRIB want it pegged at 10 per cent.

However, Osijo has stressed that the commission controversy will be resolved before the end of the month.

Osijo said “The controversy arose because the commission rate was only put in the guideline of the underwriters by NAICOM and anything that affects any arm especially if it is a profiting feat is easily grabbed. So the NIA just grabbed it without consultation with us. It is normal once it affects them but brokers felt cheated and reported the case to NAICOM.

We told NAICOM that it should have carried everybody along. So we wrote to the Commission and the Commission was very understanding and they quickly reacted to our position. NAICOM called the NIA and NCRIB together telling us to go and have a meeting. It told us to look at all the statistics that would warrant the charging of 10 per cent to eight per cent or from eight per cent to 10 per cent.”

Osijo said that “NAICOM has mandated both NCRIB and NIA to give it the report within a stipulated time, adding “And I am sure all things being equal before the end of this month, you will hear the report of the actual commission rate chargeable from NAICOM. It will not be from NIA of from NCRIB. The new rate will now be compulsory for the two of us and anybody that goes against it will be sanctioned.”

Whilst the NCRIB, according to Osijo, is not claiming to be the party to solely determine the commission rate chargeable on Group Life Policies, such right was also not given to the NIA or the underwriters, given the fact that Section 52(I) was not specific on commission rates payable on life insurance as it did for general business. However, it is the consensus of the industry that when such issues that could threaten our oneness rear’s its head we must find a mid point and resolve such amicably, she noted.

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