Naicom slams on reduction of motor insurance rate, non-payment of claims

Please share
L-National Insurance Commission, Naicom’s Deputy Commissioner for Insurance, Technical, Mallam Sabiu Abubakar and Director, Supervision, Mrs Oluwatoyin A. Charles during the Naicom seminar for financial journalists in Akwa Ibom today
By Favour Nnabugwu

Insurance company that tried to jeopardise the efforts of the National Insurance Commission, Naicom, by reducing the motor insurance premium rate for whatever means will incur the wrath of the regulatory body.

Naicom revealed that insurance companies had to pay motor insurance claims by eating into their profit when it was still at N5,000 and had to increase the rate to N15,000 after 28 years of it being at N5,000.
The nation’s Commissioner for Insurance, CFI, Mr Olorundare Sunday Thomas at a dinner for financial journalists in Akwa Ibom, said that Naicom would be grossed if any insurance company try reduce the rate by any means possible.
” We made effort to see that insurance companies do not pay claim from the profit to claimants hence we increased the motor insurance rate after so long a time and a company will now reduce the premium just like that. Naicom will not take that from any company”
Claims payment from the rate include private vehicles that were paying N5,000 premium for N1 million Third Party Property Damage (TPPD) limit, are now to pay N15,000 premium for N3 million, while owner good vehicles are to pay N20 million premium for N5 million, and staff busses are to pay N20,000 premium for N3 million.
Other areas Naicom did frantically kick against is the issue of not paying claims, and this, he said the commission would not endure.
There would be consequences” for those companies who ignore the clear cut standing rule
“Claims! we have done a lot, and we are still doing a lot to ask insurance companies be alert to their responsibilities. Recently, we’ve just issued letters to insurance companies to begin to advertise asking those who have claims to come up with their documents to enable them conclude documentation and effect payment. We have written and asked them and given them time frame in which to get this done.
He said claims have been hanging because a lot of them have issues with non documentation and getting this done “will enable companies effect payment.”
“For companies that are not paying claims that have been fully documented of course there will be consequences,” and this according to the Commission includes name and shame and it does not stop there the claims would still be paid
He had to call companies to meet their claims obligation and pay outstanding claims and it was done within 72 hours, he added that it is not something that he did like to do.
“But I don’t enjoy doing such things, it shouldn’t be like that. Companies should willingly go ahead and settle their claims.”
“There so many claims that are being settled and nobody is talking about that. “But we (Commission) are doing so much in the area of asking companies to settle claims.”

Related Post

Leave a Reply

Your email address will not be published. Required fields are marked *