Compulsory Insurances: NAICOM Warns Insurers Against Non-implementation Of Standard Rates

 
*Threatens To Sanction Defaulters

By Clement Nwoji, Abuja

The National Insurance Commission (NAICOM) has warned all insurance operators to adhere strictly to application of the approved existing premium rates for all classes of compulsory insurance or face stiff sanctions for violation.

The classes of compulsory insurance which premium rate compliance the Commission said it would monitor include: statutory group life insurance, builders’ liability insurance, occupiers liability (public buildings) insurance, healthcare professional indemnity insurance and motor third party tariff.

The warning is against the backdrop of fraudulent practices by some insurance operators who indulge in rate cutting (acceptance of low premiums below the statutory rates) in order to lure customers for patronage. And most times in event of occurrence of the insured policy, the insurers declined to pay claims due to insufficient premiums.
The insurance regulator gave the warning through circular with reference number NAICOM/A&P/CIR/12/2018, dated January 9th, 2018, to all insurance institutions. It was signed by the Acting Director (A&P), L.M.Akah for the Commissioner for Insurance, Mohammed Kari.
NAICOM’s Head of Corporate Affairs, Rasaq Salami, explained the directive to all insurers by the Commission constitute part of the efforts to curb the increasing challenge rating in the industry.