Business
NAICOM To Enforce Compulsory Insurance
The National Insurance Commission (NAICOM) will commence enforcement of compulsory insurance in the country on March 1.
Mr Fola Daniel, Commissioner for Insurance and head of NAICOM, announced this last Thursday in Enugu at the flag off of compulsory insurance products.
Daniel listed the insurance cover made compulsory by law to include motor vehicle (third party) and buildings under construction.
Others are medical and healthcare professional indemnity insurance as well as group life and employers’ liability insurance for all employers of labour.
The commissioner said the Market Development and Restructuring Initiative (MDRI) objectives would be realised if existing laws on compulsory insurance were enforced and insurance companies effectively supervised,
“ Following this programme of sensitisation and awareness creation, the commission shall among others invoke the appropriate sanctions against any individual or organisation that fails to comply with laws on compulsory insurance,’’ he said.
Daniel also said that the commission would sanction any insurance operator that failed or delayed in payment of claims .
The sanctions, he said, include prosecution of the management and Board of Directors of erring companies and revocation of operating licences.
He said relevance, impact, performance and public opinion of insurance in the country had improved following the restructuring of the industry.
“ With the impending commencement of enforcement of compulsory insurance, we aim to achieve an insurance industry capable of significant contribution to the nation’s GDP.
“ It will also enhance confidence in the use of insurance as a risk protection mechanism as well as create employment,’’ Daniel said.
Flagging off the exercise, Gov. Sullivan Chime of Enugu, attributed the apathy of Nigerians toward insurance to the unprofessional acts of some insurance companies, especially in nonpayment of claims.
Chime, who was represented by his deputy, Mr Sunday Onyebuchi, urged the commission to embark on intensive enlightenment of the public.