NAICOM moves to shut insurance firms over claims failures

•Policy holders fret over their unpaid claims

By Rosemary Iwunze

Following inability to settle outstanding claims for over three consecutive years, the National Insurance Commission, NAICOM, has cancelled the certificates of registration of Niger Insurance Plc and Standard Alliance Insurance Plc.

Meanwhile, Policyholders of Niger Insurance Plc and Standard Alliance Plc have expressed concerns on the ability of the receivers/liquidators to offset the over N15 billion insurance contract liabilities of the two companies.

Vanguard findings show that a total of N15.4 billion total insurance contract liabilities have been transferred to the receivers/liquidators of Niger Insurance Plc and Standard Alliance Plc following the cancellation of the certificates of registration of both companies.

The financial reports of both companies show that while Niger Insurance Plc has insurance contract liabilities of N11.5 billion, Standard Alliance has insurance contract liabilities of N3.9 billion.

For Niger Insurance, Sanya, Ogunkuade Esq was appointed receiver/liquidator while Kehinde Aina Esq of Aina Blankson LP, was appointed receiver/liquidator for Standard Allaince.

Vanguard investigations show that the cancellation came on the heels of both companies inability to settle pending claims. Consequently, the Nigeria Insurers Association, NIA, the umbrella body of insurance firms in the country, suspended the two troubled firms from its membership in June last year.

According to NIA, the expulsion became a necessity on the back of defaults in obligations to policyholders.

Chairman of NIA, Mr. Ganiyu Musa, noted that the Association took the measures against the two companies in order to reinforce the stand of the organisation and insurance generally, on the importance of claim payment.

Meanwhile policyholders who spoke to Vanguard expressed worry on the ability of the receivers/liquidators to settle all claims.

A former staff and customer of Niger Insurance Plc, Alika Lauretta Ronma, has insurance policy No: PO9651 from Niger Insurance Plc with outstanding claims of N374,416.64 since January 2019.

She said: “I reside in Lagos and the receivers office is in Abuja. I hope my claims will be settled without hitches”

For Standard Alliance, Mr. Tope Awe, a retiree, has a life policy SIP/14/0005402/IKJ with the company. The policy matured in 2019, the discharge voucher to settle the claims has been given to Awe, but the money has not been released. “My discharge voucher has been signed since 2019, but I have not seen any money. Now a liquidator has been appointed, I hope that my claim will be given to me in due time.” Meanwhile a spokesperson for NAICOM said: “The liquidators can settle all outstanding claims within stipulated time. Policyholders are advised to direct all their issues to them”

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Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.