Any insurance company that refuses to pay legitimate claims to policy holders will face the wrath of the National Insurance Commission, Commissioner for Insurance, Mr Fola Daniel warned in Abuja yesterday.

Daniel, who featured at a press interview also advised Nigerians to report any mischievous insurance company that reneges on genuine claims payment to the commission.

He said serious steps were being taken to reposition the insurance industry and to ensure that policy holders were not exploited by insurance companies.

“I want to appeal to Nigerians to see insurance companies as partners in progress, to see insurance as environmental friendly.

“Insurance as a means of transferring risk is the cheapest and is the oldest.

“Insurance companies refusing or delaying to settle claims, please report any claim that has been delayed or that is denied wrongly.

“Report to us at the National Insurance Commission and we will get you redress.’’

Daniel assured that NAICOM, the insurance industry regulator, would not shirk its responsibility of protecting policy holders and would equally sanitise the industry and ensure discipline.

He told reporters that Nigerians deserved an insurance industry comparable to what was obtainable in the United Kingdom, the United States of America and in the developed world in general.

He noted that it was unfortunate that Nigerians still had a negative perception of the insurance industry as not performing on promises made.

“The situation in the industry has changed over the years,’’ he said adding that as regulator, NAICOM had ensured that only the right companies with the required capital base operated in the industry.

He told the press that the Federal Government had in the last couple of years focused on the insurance sector more than any other financial sector, considering its role to the growth of the economy.

He noted that in the last 15 years, the capital base of insurance companies had been raised about six times, a rate higher than what obtained in the sister banking sector.

“The insurance industry has had, up-scaling of capital six times in the last 15 years alone.

“The last one in 2007 was astronomical; if you like it was abnormal because a composite insurance company hitherto needed only N350 million to float an insurance company, but the government came and said it’s going to be N5 billion.

“A movement from N350 million to N5 billion. Why did it do that?

“The government was also desirous of having an insurance industry that can support economic growth; an insurance industry that has the wherewithal to respond promptly to claims settlement; an insurance industry that can be trusted.’’

Daniel told newsment that the commission had successfully removed all those that gave the insurance industry a bad image, stressing that “before 2007, we had about 120 insurance companies and that has been collapsed to about 62.’’