NAICOM Decries Inadequate Attention To Insurance Policies In MDAs

The Commissioner for Insurance, National Insurance Commission (NAICOM), Mr Mohammed Kari, says insurance has not been rightly positioned to provide service to Ministries, Departments and Agencies (MDAs) nationwide.
Kari told the News Agency of Nigeria (NAN) that the position of insurance in all the MDAs had been relegated to what anybody could do irrespective of profession.
He explained that non-professionals were handling insurance duties in most insurance offices in the MDAs,
He said when in such situation, the office was bound to face problems as regards to claims settlements and payments.
He said, “I think the MDAs are not appreciative of the position of law; so what we have decided to do is to make them aware.
“ And to make them aware, we have selected certain stakeholders in government and business to emphasise the need for them to inculcate the culture of insurance.
“ We have found out that a lot of MDAs do take up insurance but improperly, and improper insurance placement is a big waste because it makes regulation of the industry very difficult.
“So that is why we have made the policy to go round to the major stakeholders, to explain to them what needs to be done and seek their cooperation so that going forward things will be done properly.
Kari said that it was important for MDAs in the country to recognise the important role insurers played in the economy and urged them not to take insurance positions for granted.
The commissioner said in order to assist MDAs in taking a quantum leap, NAICOM would come up with an advisory circular/information on what is required of the MDAs as regards insurance.
“ But first of all we are going to collect data from them, find out what they insure; how they determine the value and who it is insured with.
“ We have data of every insurance operator; we have the ability to advise the government not to deal with this intermediary if necessary because we have their track record.
“ If it is too bad we stop it from operating but if it is not too bad we put restrictions on them because we know all their information and the government does not.
He said that the idea of MDAs writing NAICOM to confirm whether companies were licensed after they had already gone into business with them was not a good idea.
He said that NAICOM was available to provide professional advice to the MDAs and they should ensure utilising the service.
On efforts geared towards increasing insurance penetration in the country, Kari said the commission would inaugurate an insurance committee that would see to the issue.
“ The insurance companies will be meeting on a monthly basis with us to find out ways in which we can support ourselves; we can develop the industry and improve penetration.
According to Kari, government’s policies were not centered at profit making but towards service provision and other corporate social responsibilities.
He said the duty of a regulator was to guide providers as they were beneficiaries of government policies, adding that when the policies were established properly it would transcend to increased penetration.
Source NAN