NAICOM tells policy holders to report non-payment of insurance claims
- indicts firms in recent report
The National Insurance Commission (NAICOM) has taken a bold step in sanitizing the industry by asking insurance policy holders to report non-payment of claims by insurance firms to the Commission.
This step is being taken by the Commission in a bid to ensure regulatory compliance and urged insurance firms to meet all financial reporting requirements to ensure transparency.
The National Insurance Commission made these known in a report released on its website on Wednesday.
The report detailed 1,571 complaints filed by policy holders against various insurance companies in Nigeria and it named the Industrial and General Insurance (IGI) Plc as topping the list.
The report is part of ongoing efforts to ensure that insurers settle valid claims following dispute resolution.
NAICOM assured policy holders that complaints will be thoroughly investigated and directed insurance companies to pay for all cases resolved by the regulator as part of efforts to sanitize the industry and improve policy holder confidence.
The report read that apart from Industrial and General Insurance (IGI) Plc which recorded the highest number of complaints, with 327 cases from policy holders, “other firms include the African Alliance Insurance Plc with 281 complaints, Standard Alliance Insurance (229 complaints), A&G Insurance Plc (80 complaints), AIICO Insurance Plc (65 complaints), and Coronation Insurance Plc (29 complaints).”
According to the report, the complaints against them range from insurance policies, including motor insurance, group life insurance, education policies, bonds, annuities, and all-risk policies.
“This directive aims to rebuild trust in the industry, which has been marred by cases of delayed or denied claims, discouraging many Nigerians from embracing insurance products. By holding insurers accountable, confidence in the sector can be restored, promoting higher levels of customer satisfaction.
“The document aims to promote transparency and accountability within the sector, revealing that several insurers face a high volume of customer grievances, from delayed claim settlements to disputes over policy terms.
“NAICOM has consistently emphasized the need for insurance companies to fulfill their obligations to policyholders. The commission has warned that, moving forward, insurers will be held financially responsible for all resolved complaints and must promptly settle claims once disputes are adjudicated.
“This move aligns with NAICOM’s efforts to improve consumer confidence in the insurance industry by enforcing compliance with settlement obligations. The commission reiterated that failure to pay valid claims could result in regulatory sanctions against defaulting insurers.”, the report emphasized.
According to the report, the latest publication serves as a transparency initiative by the Commission aimed at exposing companies with unresolved customer disputes.
