Brokers seek CAC’s support for professionalism

The Nigerian Council of Registered Insurance Brokers (NCRIB) has solicited the understanding and support of Corporate Affairs Commission (CAC) in the incorporation of new companies wishing to go into insurance broking.

The Council encouraged CAC to henceforth request for evidence of professional qualification of the Chartered Insurance Institute of Nigeria (CIIN) or its equivalent, from at least a director of prospective companies as required for companies going into other professional practices.

This position of the Council was made known during a courtesy visit of a delegation of the Nigerian Council of Registered Insurance Brokers (NCRIB) led by Ayodapo Shoderu, its President, to the Commission’s office in Abuja. Shoderu explained that the request would further ensure greater professionalism and improve the quality of service delivery by the companies.

The NCRIB President who applauded the CAC for ensuring effective corporate governance in business through its efficient and dispassionate approach in the registration and incorporation of business institutions in Nigeria, particularly under the management of Bello Mahmud, the incumbent registrar general, stressed the need to imbibe the position of the Council on registration of new firms.

While intimating the Registrar and his team with the workings and importance of Insurance brokers in relations to Nigeria economy, Shoderu further stated that NCRIB, the umbrella body of all registered insurance brokers in Nigeria, with over 500 members operating within the nooks and crannies of Nigeria, should be allowed to play its pivotal role in sustaining the nation’s economy.

Responding Mahmud assured the Council of the Commission’s commitment to adhere to all necessary laws and regulations that spelt out the basic minimum requirement before registration of any broking firm henceforth. He immediately charged his management team to always pay attention to details as enumerated by the NCRIB President.

While appreciating the Council for the Courtesy visit, Mahmud enjoined the industry to reconsider its stand on implementation of ‘No Premium, No Cover’ policy, stressing that many organisations have found it difficult to meet up with their insurance obligations.

According to him, many insured public still find it difficult to get their claims when there is need for it.

However, Shoderu explained that the prayer of the Commission’s on the amendment to the implementation of “No Premium, No Cover” was not within the jurisdiction of the Council, stressing that Insurance Act prohibit the practice. He further explained that with the implementation of the policy, no underwriter could hold on to genuine claims.

He said, “No underwriter will provide cover without payment of premium and no Broker can hold to premium beyond a stipulated time. The onus is on brokers to help their clients pursue genuine claims when the need arises. That is one of the reasons while we clamour for involvement of duly registered insurance brokers while transacting insurance business.”