By Emman Ovuakporie & Johnbosco Agbakwuru
ABUJA—THE House of Representatives adhoc committee yesterday queried insurance companies for insuring dysfunctional coaches for Nigeria Railways Corporation, NRC.
The committee pronbing cash paid to government officials annually by insurance companies mandated to insure government fixed assets by way of return of premium queried the NRC and the management of Regency Alliance for insuring dysfunctional coaches and other machines belonging to the corporation.
The committee also picked holes in the insurance cover for the Presidential Air Fleet, which Standard Alliance, could not provide the exact insured amount for 2013.
Chairman of the ad-hoc committee, Adekunle Abdulkadir, had sought explanation from the Regency Alliance why it provided a ‘plant all risk’ insurance for NRC at N142, 362,000m in 2014, when most of the machines were not functional.
Details of the insurance for 2014 and 2015 showed that the gross premium invoiced (GPI) was N404, 922, the premium received N323, 937, commission N80,984, while the net premium was N323.937.
Also, for June and September 2014, the NRC was insured by the Regency Alliance at an insured sum of N408, 720,000 million, with a GPI of N1,097,669.
Premium received stood at N878,158, while the commission was N219,539 and net premium N878,159.
The committee asked why the NRC entered into a plant all risk insurance cover in 2014 when most of its equipment were grounded.
But the executive director (business development) of Regency Alliance, Mr. Sunny Olaniyi, told the committee that there was nothing wrong in insuring non-functional assets since they still belong to the NRC.
The committee also queried Regency Alliance for not providing the specific sum insured for the Nigerian Security Printing and Minting Company