By ROSEMARY ONUOHA
The Federal Government is yet to pay up the balance of N2 billion Group Life premium it is owing insurers for last year, according to the Nigerian Council of Registered Insurance Brokers, NCRIB.
Accordingly, the NCRIB has demanded that the Federal Government pay up the outstanding balance which represents 59 per cent of last year’s group life premium, having paid only about N1 billion of the over N3 billion premium.
President of NCRIB, Mrs. Laide Osijo, who disclosed this at the Council’s members evening in Lagos, said the government has only paid 41 per cent of the total group life premium for last year, stressing that the non-payment of the outstanding is unhealthy for the insurance industry.
She said, “I want to appeal to the Federal Government for the release of outstanding premium on group life for the year 2012. As it stands, only 41 per cent of the premium has been paid remaining 59 per cent to be paid.
“This situation has made many insurance companies to discountenance claims under the year in review of the now existent ‘No premium no cover.’ This, as we are all aware, is to the displeasure of some beneficiaries especially to those who died in active service. The impression many of them have is that the insurance industry is insensitive to their plights, a situation that creates serious image smear for the industry.”
Osijo therefore called on the government to assist the industry to avoid further accumulation of unpaid premiums and claims, adding that such could negate the new premium collection system.
According to her, the initial apprehension on the workability of the ‘no premium no cover’ policy is gradually being laid to rest as brokers and underwriters now testify of the gains from the initiative.
Managing Director of Lasaco Assurance Plc, Mr. Olusola Ladipo-Ajayi, who hosted the event, lauded the giant stride of the NCRIB and promised the company’s commitment to continue to work with brokers to deepen the industry.
He said the company will continue to eschew professionalism and sustain its achievements, adding that the firm presently is the leading in special risk businesses and remains the only underwriting firm in the country with ISO certificate.