By Favour Nnabugwu
Eleven insurance companies have indemnified the Nigerian National Petroleum Corporation, NNPC, group’s life insurance for N2.4 billion with a cover period that commenced in April this year to March 31, 2017, Vanguard investigation can reveal.

The sum assured for the NNPC group’s life scheme for 2016/2017 stands at N478,812,651,350.15, with a total premium of N2,456,308,901.45 which the corporation has fully paid to the insurance companies.

New GMD, NNPC, Dr. Maikanti Baru

The 11 co-insurers, led by Zenith Life Insurance, with a share of 20 percent of the risk, has Royal Exchange Life, NSIA and Custodian Life Insurance, with 10 percent each; Mutual Benefit Life, 9 percent; Leadway Assurance, LASACO Assurance and WAPIC Insurance, each with 8 percent share of the business. AIICO Insurance and Ensure Insurance each has 6 percent, while UBA Metropolitan has 5 percent.

However, a House of Representatives committee investigating insurance of government assets had alleged fraud in NNPC and the Head of Service insurance schemes.

Though investigations are still on-going,  Adekunle Akinlade, Chairman of the committee, told Vanguard in Abuja that he would not grant interview until the investigations were concluded.

But Vanguard investigations revealed that some insurance companies have been honouring the invitation of the House in batches of four to five and more are still to go the National Assembly.

The Director-General (DG), Nigerian Insurers Association (NIA), Mr Sunday Thomas, told Vanguard that the association did not intend to join issues with the lawmakers.

According to him, “We do not want to join issues with the House of Representatives on the issue because we believe that the approach should not be tainted towards damaging the long earned image of the insurance industry.”

“They have the right to investigate and investigation is still in process. Why would they not be patient enough to conclude investigation before they start jumping into conclude.”

The entire premium of the industry was over N300bn so where did the N200bn they are talking about on group life came from. It shows they misunderstand the operations of the insurance sector.”

Speaking On the probe of some Insurance firms and Government’s Ministries, Departments and Agencies, by the Federal House of Representatives, the Commissioner for Insurance, Alhaji Mohammed Kari in Gombe on Saturday the commission is collaborating with the Legislators to ensure government’s insurances are properly undertaken.

He lauded the efforts taken by the legislators, adding that the result would help restore public confidence on insurance.

Kari stressed that the probe would also help to ensure that government’s insurance budgetary provisions are properly utilized. He noted that with the probe, premium budget for next year would be properly channeled.