Business
Lawyers Seek Implementation Of Insurance Law
Some lawyers in Lagos last Tuesday called on the National Insurance Commission (NAICOM) to put in place a mechanism for the effective control and regulation of the nation’s insurance law.
The lawyers made the call in separate interviews with our correspondent in Lagos.
The Financial Secretary, Nigerian Bar Association (NBA), Lagos branch, Mr Philips Njeteneh, noted that the implementation of the insurance law was weak.
Njeteneh urged that the machinery for its implementation should be enhanced.
According to him, there is a problem in the industry when people do not have confidence in insurance companies due to the lack of fulfillment of obligations.
“Most people obtained fake third party insurance covers because they have experienced situations where insurance companies refused to pay premium in the course of any eventuality,’’ he said.
Njeteneh said there was a need to re-awaken the operations of insurance law in the country, since it served as a very useful tool for tackling unpredictable circumstances.
Mr Ndubusi Okafor, a lawyer, called for the elimination of insurance companies that are not functional as part of the efforts at sanitising the sector.
Okafor observed that there had been a drawback in the administration and supervision of insurance law in the country.
He said that most owners and victims of insured buildings that collapsed in Lagos were now complaining of not receiving compensation.
Okafor appealed to NAICOM to effectively regulate the activities of insurance companies in the country.
Mr Stephen Okwofakworaye, a lawyer, said that there was a need to ensure that insurance companies’ possessed requisite facilities and capital base before being allowed to function.
“Where a company undertakes to compensate an individual for damage in such a manner that affects its funds, then it shows that such company may not be able to handle insurance business,” Okwofakworaye said.
He said that most insurance companies shy away from indemnity whenever they realised that they have insufficient funds.
He urged insurance companies to restore confidence in the sector by living up to expectations, to stem the purchase of fake insurance covers.