NAICOM Compels Insurers To Pay N540m Claims

Determined to ensure adequate protection of policyholders and insurance consumers over settlement of genuine insurance claims, the National Insurance Commission (NAICOM) compelled insurers to settle claims to the tune of over N539 million during the first half of 2015.

During the first six months of the current year, NAICOM stated that it received a total of 147 complaints from policyholders, beneficiaries or their representatives during the period under review.

Out of these147 complaints, NAICOM said that 34 complaints were successfully resolved. The 34 settled cases amounts to the sum of N539,760,298.88.

However, NAICOM did not give a breakdown of the settled cases.

Majority of the remaining complaints, NAICOM pointed out, are at advanced stages of being resolved.

The commission further stated that it employed a civil process of resolving these disputes and complaints through correspondences and mediation meetings between all stakeholders.

The commission established the Complaints Bureau unit in accordance with section 8(a) of the NAICOM Act No. 1 of 1997 to serve as an organ to which members of the public may submit complaints against insurance companies and intermediaries.

The bureau is not an alternative to the court of law, where certain disputes necessarily have to be resolved. Its findings may be related to the provision of section 8 of the NAICOM Act No. 1 of 1997, which empowers the commission to enquire into the operations of insurance companies and intermediaries.

All insurance disputes arising from insurance policies issued by registered insurers, such as undue delay in settlement of genuine claims, denial of liability, and other matters relating to the discharge of obligations by insurance companies and intermediaries, among others, can be referred to the bureau.

Source : Independent

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