The National Insurance Commission (NAICOM) is set to commence the enforcement of compulsory insurance in the country.
The Board of Directors of NAICOM led by its Chairman, Dr Abubakar Sani, was at the Office of the Secretary to the Government of the Federation (OSGF), in Abuja, yesterday, to secure the buy-in of the SGF, Mr. Boss Mustapha.
Mr. Boss Mustapha, who was represented by the Permanent Secretary, Dr. Maurice Mbaeri, said that compulsory insurance was critical for the growth of the nation’s economy.
He charged the commission to take a firm stance on payment of claims by insurance companies, as a means of developing the needed confidence among members of the public.
According to him, “Enforcement of compulsory insurance for the public and private sectors is good. It’s an area covered by your mandate. Government will help in this regard. The unseriousness of citizens towards insurance often springs from awful personal experiences.
“People lost interest in taking up policies because of lack of being indemnified. In some instances, insurance companies hide under funny circumstances to deny the insured their dues. Please look into this area to ensure people embrace insurance policies.
“The onus is on you, send a draft copy of that letter on compulsory insurance and let the SGF know how to issue service wide circular for MDAs’ compliance.
“Send us the circular capturing all what you want and once it meets the expectation of the government, we will issue it. We will do all that is necessary to ensure the board and management meet their mandates.”
Mbaeri also charged the board and management to keep to their roles to avoid conflicts, which he said was common across Departments and Agencies.
In his remarks, Mr Sunday Thomas, the Commissioner for Insurance, explained that the operational licences of two insurance companies were revoked due to poor claims payment.
Thomas promised not to compromise the sanctity of claims payment and that any insurance company that failed in that regard would be sanctioned.
NAICOM Chairman, Dr Sani said that NAICOM Board visited the OSGF to discuss plans towards strengthening the industry.