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NAICOM Warns Against Non-Settlement Of Insurance Claims

Ebuka Daniel

The National Insurance Commission on Wednesday warned the management of insurance companies in Nigeria against refusal to pay claims.

The Commissioner for Insurance and Chief Executive Officer of NAICOM Mr. Olorundare  Thomas said this at the 2021 insurance directors’ conference with the theme, “Insurance Industry in a Changing World

We should know as a fact that insurance business is about payment of genuine claims and anything short of that will continue to hurt insurance business in the country thereby giving the industry poor reputation, perception and image. I urge you to look at this issue at your level and deal with it decisively as it has continued to give the industry a bad name.

He said while the commission has implemented various measures to reposition the insurance industry and make it contribute significantly to the country Gross Domestic Product, the issue of claims settlement is threatening such efforts.

He said urged the Directors to work closely with their management as a lot is expected from them at the top level.

The NAICOM Boss said the Commission is working assiduously to open up the market particularly the retail end, conducting engagements with various agencies and state governments on the need to boost insurance culture across the country.

He said, “If the industry is desirous of having significant impact on the nation’s GDP, it therefore must take retail business seriously. This has to start from the policy level and the directions clearly spelt out.

“This also must be supported with massive awareness campaign about insurance products across the geo-political zones taking into consideration peculiarity of each of the regions.

“One issue that has been setting the industry on a reverse gear in its developmental efforts is the issue of claims settlement. A few amongst us  have been making this work a tedious one by not paying claims promptly.

“We should know as a fact that insurance business is about payment of genuine claims and anything short of that will continue to hurt insurance business in the country thereby giving the industry poor reputation, perception and image. I urge you to look at this issue at your level and deal with it decisively as it has continued to give the industry a bad name.

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