The technical committee of the Nigerian Insurers Association and the Nigerian Council of Registered Insurance Brokers NCRIB, are collaborating on minimum documents to be requested for different classes of insurance business for quick claims processing and payment.
Chairman, Nigerian Insurers Association NIA, Mr. Kunle Ahmed stated this at a Quarterly Media Chart with insurance journalists at NIA House, Victoria Island, Lagos.
This according to Mr Ahmed will simplify claims payment and harmonise the process, adding that time has come to have an industry restriction on the minimum documents required for claims payment so as to set a standard for the industry and ensure that claims are logged with ease and paid on time.
He says the history of claims payment is an industry obligation, citing the claims payment of 2023, when the industry recorded a premium income of N1.1tr and paid N536.5 bn as claims, translating to 53% of premium received.
“Despite the quantum of claims paid we still believe we have a lot more to do especially around the ease of making claims and the timely payment of those claims. The hallmark of any insurance company worth its licence is the timely payment of claims and should be the delight of both the insurers and policyholders.”
Speaking on Naicom’s publications of pending claims in the books of insurance companies on the Commission’s website, he said the action had given comfort to policyholders and a signal to companies that the Commission has a zero tolerance for claims default.
In the same vein, the Nigerian Insurers Association (NIA), while also discussing the Nigerian Insurance Reform Bill presently awaiting the president’s assent, said it will enhance consumer protection by creating a compensation fund for victims of liquidated insurance companies and uninsured road accident victims.
“The Insurance Reform Bill includes provisions designed to protect policyholders adequately. A fund has been set aside to meet requests of policyholders whose primary insurance company is liquidated or faces .” Mr Ahmed said.
“The Bill also reflects increased capital requirements, which we believe will lead to stronger and more virile insurance companies that can develop new products, and address the pain points of consumers”.
According to the NIA Chairman, a fund is included in the Bill for uninsured road accident victims, saying that these sections of the Bill are expected to enhance trust and confidence in the insurance industry.
Speaking on the Tax Reform Bill at the National Assembly, the NIA boss explained that the NIA has made a representation to the government regarding the taxation of insurance premiums, noting that the insurance premium belongs to shareholders and should not be taxed.
“Changes to any tax bill could impact various sectors of the economy, including insurance. We have made a representation to the government regarding the taxation of insurance premiums, emphasising that some premium belongs to shareholders, especially on the life insurance side, and this concern is being taken seriously.”he said.
On the enforcement of third party motor insurance in Nigeria, Ahmed lauded the Inspector General of Police and the Commissioner for Insurance for their dedication to protect Nigerians on the road.
“For us at NIA, the enforcement of the third-party policy is largely to the benefit of policyholders. Policyholders are entitled to compensation for their liabilities in terms of injury or death to third parties, which is unlimited.” Ahmed noted.
Speaking further, the NIA boss said member companies of the body have seen slight growth in third-party policies since the pronouncement adding that the enforcement of the third-party policy is a welcome development for the economy, for the insurance companies, and for policyholders.
“We expect to see a situation whereby motorists do not get out of their cars and fight when accidents occur.”
While emphasising the importance of claims payment in the industry, he said the hallmark of any licensed insurance company is the timely payment of claims.
“Despite the amount of claims paid, we believe there is more to achieve in terms of the ease and timeliness of claims payments. Insurance companies are ready and willing to pay valid claims. The hallmark of any licensed insurance company is the timely payment of claims” Ahmed added.