The Nigerian Insurers Association (NIA) has dashed the hope of loss adjusters to have their scale of fees reviewed upward, as the NIA does not see any justification for an increase in the fees.
While the Institute of Loss Adjusters of Nigeria (ILAN) had requested that the fees be increased, the NIA promised to look into the issue and directed two of its technical committees, that is, Fire and Accident Offices Committees to look at the request and make recommendations.
The Chairman of NIA, Godwin Wiggle, has, however, stated categorically that there is no justification for an increase in the fees charged by loss adjusters since underwriters presently bear all their expenses while undertaking their duties.
Responding to questions from journalists in Lagos, Wiggle clarified that apart from the professional fees being charged by the loss adjuster, the expenses the adjusters incurred are also borne by the insurance companies.
He said “I still have not seen the justification for an increase in the fees. Their services are classified in a range and the range is convenient for them to carry out their exercises. Apart from the fees, there is another element of expenses that is borne by the insurance companies.
“For every cost they incur in the cause of adjustment, that fee is 100 per cent passed to the insurance companies. The question I ask every day is where is this increase? Are they saying that their expenses multiply by inflation should now be paid to them? The fee is a fixed percentage the more the value of the claim, the more their income is. If we want to even do a statistics of what loss adjusters have earned in the last five years, compared to what they earned in the last 10 years, you would be shocked at the numbers, so, there is still no justification for that increase.”
He said there is no need for rancour between underwriters and loss adjusters as the laws have stipulated how they should operate.
“Their expenses are borne by the underwriting companies, so what is the fuss about? We that pay the fees do not increase our premium, instead, what is happening is that our premium is dropping, if we want to examine it that same way as our premium is dropping, then their rates should also drop. But, we have resolved to leave the rate just as it has been,” he stressed.