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Penalty for late submission of financial accounts should be stiffer – Experts

With only seven days to the end of the year, some insurance companies are still foot dragging in submitting their 2012 financial results to the National Insurance Commission, NAICOM, because the penalty for late submission of results is mild, experts have said. Accordingly, there should be stiffer sanctions meted out to companies for submitting their financial results late, according to experts.

It will be recalled that Section 26, subsection (3) of the Insurance Act, 2003, states that “An insurer which fails, neglects or refuses to file the returns and accounts under this section commits an offence and is liable on conviction to a fine of N5,000 per day for each day of default.”

However, insurers that are yet to submit their results are not bothered by the N5,000 per day penalty because they see it as peanut.

“If the penalty is such that pains them, then they will sit up,” an expert said.

Recall that the National Insurance Commission, NAICOM, said that 18 companies are yet to submit their 2012 audited annual accounts.

According to NAICOM, the companies include NICON Insurance, Alliance & General, Alliance & General Life Assurance Plc, African Alliance, Anchor Insurance, Capital Express, Goldlink Insurance, Spring Life Assurance, Guinea Insurance Plc, Industrial & General Insurance Plc and International Energy Insurance Plc.

Others are Investment & Allied Assurance Company Ltd, Mutual Benefits Assurance Plc, Mutual Benefits Life Assurance Company, Nigerian Agricultural Insurance Corporation, Staco Insurance Plc, Standard Alliance Insurance Plc and Unic Insurance Plc.

However, the Commission said it has approved the accounts of Royal Exchange Insurance, Prudential Life Assurance, Regency Alliance.    Company and Zenith Life Insurance Ltd.

According to NAICOM it has approved a total of 22 accounts of underwriters out of the 42 firms that have submitted their financial reports, while 20 underwriting firms are awaiting approval.

The 22 companies whose accounts have received approval are Mansard Insurance Plc, ADIC Insurance Limited, WAPIC Insurance Plc, Consolidated Hallmark Insurance, Oasis Insurance Plc, FBN Life Assurance Limited and Continental Reinsurance Company Plc.

Others are AIICO Insurance Plc, Leadway Assurance Company Limited, Crusader General Insurance Limited, Crusader Life Insurance Limited, UBA Metropolitan Life Insurance Company, Zenith Insurance Company Limited, Standard Alliance Insurance Life, UnityKapital, Unitrust Insurance Company Limited, Custodian & Allied Insurance Plc, Regency Alliance Company, Royal Exchange Assurance Plc, Sovereign Trust Insurance Plc, Zenith Life Insurance Ltd and Royal Prudential Life Assurance Plc.


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