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Compulsory insurance premium hits N29bn

The National Insurance Commission, NAICOM, has said that volume of premium written under the compulsory insurance has grown to N28.68 billion from 2009 to the end of 2012.

Commissioner for Insurance, Mr. Fola Daniel, disclosed this at a seminar for insurance journalists held in Uyo, Akwa Ibom State, last Friday.

According to Daniel, the premium increased by 92 percent from N14 billion.

Daniel said the number of insurance policies written under compulsory insurance in the last three years also appreciated sharply by 111 percent from 72,180 in 2009 to 152,181 at the end of 2012.

The NAICOM boss added that the industry, in the last three years, has had some geometric projections, adding that the industry will achieve well over 100 percent at the time the performance of 2013 is added to the figures available.

He noted that despite the inability of the commission to attain the N1 trillion mark it planned to, through the Market Development and Restructuring Initiative, MDRI, in 2009, it had vigorously pursued it across the six-geo-political zones of the country and considerable progress had been made given the above statistics.

According to Daniel, the performance so far shows that  insurance companies are voluntarily meeting up to their obligation without the commission getting involved, adding that they are also meeting up to their responsibility of claims payment.

Going forward, he said that they will consolidate on the gains made so far and ensure proper implementation of compulsory insurance products to be able to enhance the industry contribution to GDP.

He noted that the various state governments had continued to show interest in insurance business, adding that group of underwriters have come together to enforce the motor vehicle third party liability insurance in Imo State in collaboration with the state government and that the scheme was working.

He said another group of 19 underwriters are enforcing the occupiers’ liability insurance in Enugu State in collaboration with the state government.

He further said that the commission will continue to collaborate with other states government to embrace these models of insurance.



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