By LOVETH AZODO, Lagos
The Nigerian Insurers Association (NIA) has expressed its displeasure towards the sale of motor insurance policy below approved rates by some insurance companies.
The Director-General of NIA, Mrs. Yetunde Ilori, who also threatened to report defaulters to National Insurance Commission (NAICOM) stated this in a circular, titled, NIA.MTPC/YI/23, ‘Adherence To The Approved Rates For Motor Insurance’, dated; May 24, 2023 and sent to all Chief Executive Officer of Member, General Business.
It would be recalled that NAICOM has approved N15,000 insurance premium for private third party motor insurance policy which took effect from January 1, 2023. The commission warned that failure to comply with the circular shall attract appropriate regulatory sanction.
Mrs. Ilori noted that following the decision reached at the 2023 CEOs retreat in respect of the need to implement the new premium rates on motor insurance, it has become pertinent for the association to reiterate the need for companies to sell motor insurance policies at the approved rates.
She stated that secretariat has received reports that some companies are selling below the approved rates, stressing that this does not augur well for growth of the market even as it brings serious reputation issues to the industry.
She said the Governing Council is displeased with the activities of agents within licensing offices engaged by member companies to sell third party motor insurance at reduced rates and other such arrangements.
She said the NIA would not hesitate to report defaulting companies to NAICOM, adding that companies are therefore enjoined to ensure compliance to avoid regulatory sanction.
