By Favour Nnabugwu
Indications emerged weekend that insurance companies’ chief executive officers have adopted a new tactics of defrauding their companies under the term ‘provisions.’ Added to the league of such provisions is what they termed provision for National Insurance Commission, NAICOM.

The revelation came on the heels of discoveries by the commission that insurance chieftains illegally collect money running into millions of naira from their companies under the guise of ‘social responsibilities, among others to the commission and such money never get to the NAICOM nor found in the companies’ coffers.

This is despite the fact that the present day NAICOM does not allow or permit any of its staff or employee to accept gratifications under any form or name attached to it, from insurance operators.

Insurance companies’ chief executives had in time past devised means of making money from their organisations under terms like overriding commission, premium purchase etc., which the supervisory body had to stop, yet they have found new ways of milking their companies.

Mr. Fola Daniel, Commissioner for Insurance had warned insurance shareholders and directors to at all times, ask questions and even investigate properly when they come across such provisions in their companies’ accounts.

Corporate scandal often arises with the disclosure of misdeeds by trusted executives of big or public corporations. Such misdeeds typically involved complex methods of misusing or misdirecting funds, overstating revenues, understating expenses, overstating the value of corporate assets or underreporting the existence of liabilities. Oftentimes, managers and employees are pressured or willingly alter financial statements for the personal benefit of the individuals.

Daniel had told shareholders of insurance companies to always ask questions if they at any point in time find discrepancies in companies’ accounts such as provisions for debt, provision for NAICOM.