Insurance firms get Sep 30 deadline for outstanding claims
AUGUST 16, 2015 : NAN
Leave a Comment
The Commissioner for Insurance, Alhaji Kari Muhammad, has
said that NAICOM will not go back on the Sept 30 deadline for
insurance companies to clear all outstanding claims of policy
holders.
Muhammad said in an interview with the News Agency of Nigeria
in Lagos on Sunday that National Insurance Commission would
enforce the deadline on effective claims management.
“Other reasons for implementing such deadline and sanctions
are effective trade practices and fair treatment of policy holders
and intending consumers,” he said.
Muhammad said for Nigeria’s insurance industry to be relevant,
the prescribed standard of practice set by the commission
should be implemented.
He said the claims Management Guidelines document requires
each insurer to develop, document and implement claims
management and payment policies.
The commissioner expressed dissatisfaction with large numbers
of unpaid claims by insurance firms, including those with robust
capital bases.
Muhammad said if the situation was allowed to continue, the
growth of the industry would be stalled, noting that the current
industry level was still below 35 per cent.
“Also, policy buyers and intending ones will easily lose
confidence in the sector as it deepens the poor image of
insurance practice in Nigeria,” he said.
Muhammad said NAICOM was determined to check bad
practices in the industry through effective claims management
and ensure adherence to global standards.
He commended his predecessor in office, Mr Fola Daniel, for
designing policies that encouraged growth in the industry.
“Before 2007, the industry capitalisation was just N98bn with 11
per cent growth rate,” Muhammad said and added that the
former management settled complaints worth N4.2bn.
NAN recalls that NAICOM, in a circular on July 6 gave insurance
firms up to September 30 to clear all outstanding claims of
customers or be sanctioned.
The commission said from October 1, it would invoke the law
and punish defaulting firms.
Leave a Comment
The Commissioner for Insurance, Alhaji Kari Muhammad, has
said that NAICOM will not go back on the Sept 30 deadline for
insurance companies to clear all outstanding claims of policy
holders.
Muhammad said in an interview with the News Agency of Nigeria
in Lagos on Sunday that National Insurance Commission would
enforce the deadline on effective claims management.
“Other reasons for implementing such deadline and sanctions
are effective trade practices and fair treatment of policy holders
and intending consumers,” he said.
Muhammad said for Nigeria’s insurance industry to be relevant,
the prescribed standard of practice set by the commission
should be implemented.
He said the claims Management Guidelines document requires
each insurer to develop, document and implement claims
management and payment policies.
The commissioner expressed dissatisfaction with large numbers
of unpaid claims by insurance firms, including those with robust
capital bases.
Muhammad said if the situation was allowed to continue, the
growth of the industry would be stalled, noting that the current
industry level was still below 35 per cent.
“Also, policy buyers and intending ones will easily lose
confidence in the sector as it deepens the poor image of
insurance practice in Nigeria,” he said.
Muhammad said NAICOM was determined to check bad
practices in the industry through effective claims management
and ensure adherence to global standards.
He commended his predecessor in office, Mr Fola Daniel, for
designing policies that encouraged growth in the industry.
“Before 2007, the industry capitalisation was just N98bn with 11
per cent growth rate,” Muhammad said and added that the
former management settled complaints worth N4.2bn.
NAN recalls that NAICOM, in a circular on July 6 gave insurance
firms up to September 30 to clear all outstanding claims of
customers or be sanctioned.
The commission said from October 1, it would invoke the law
and punish defaulting firms.
Comments
Post a Comment
Comments......