By Favour Nnabugwu
The National Insurance Commission (NAICOM) is leaving no stone unturned in making sure that insurance companies are timely with the submission of the financial accounts or face some adverse consequences. Vanguard investigations revealed that the Commission no longer hesitate to report insurers to the Securities and Exchange Commission (SEC) in the case of quoted companies and the Financial Reporting Council of Nigeria (FRCN).
The insurance companies have till June 30th as deadline of every year to submit their audited full year accounts for previous year to NAICOM and quoted insurance companies have March 31st deadline. The companies pay N5,000 fine for each day they breach the law. Vanguard findings showed that only about 19 percent of the insurance companies submit their financial accounts on time to the regulatory body while 77 percent submit three months after June 30 deadline and the remaining 4 percent struggle all through to over one year behind deadlines. For instance, 10 insurance companies paid a cumulative N9million to NAICOM as monetary fines.
According to NAICOM, as at January 13, 2017, the accounts of 47 firms have been approved, while five were undergoing review process as at that date. On why regulators fine operators, the Commissioner for Insurance and helmsman of National Insurance Commission (NAICOM), Alhaji Mohammed Kari, said insurance is a regulated business, hence any operator who chooses to play in the sector must be prepared to do so in strict compliance with the extant insurance laws.