The National Insurance Commission, NAICOM, has imposed $4 million on some insurance companies for non-compliance with operational rules and guidelines.
Deputy Commissioner, Technical of NAICOM, Mr. Sunday Thomas disclosed this at a seminar organised for insurance reporters in Benin, Edo State.
According to him, the Commission would no longer treat the issue of default with kid gloves.
Thomas said, “As regards breach of operational guidelines, there are some companies that will pay as much as over $4 million dollars in penalties. There are no kid gloves anywhere anymore. If you default, we will give you ample opportunity to come and defend yourself. We will open it up for discussion but eventually if you are found to have defaulted, you will have to pay a price because adequate warnings have been given.”
Thomas also said that the regulatory body had warned operators not to grant insurance covers without adequate information about the insured as such action will also attract sanctions.
“It doesn’t happen anywhere in the world where you grant blind cover. We have stepped in and have issued appropriate circulars to underwriters. We have warned companies and I am sure they heard us clearly.
“If you must insure the military you must have their names, you must have their information, otherwise insurance cannot be granted,” Thomas stated.
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