NCRIB seeks lesser fines on member firms

As the insurance sector witnesses an era of fines and penalties as a result of tightening regulation, brokers under the umbrella body of the Nigerian Council of Registered Insurance Brokers (NCRIB) has pleaded with the National Insurance Commission (NAICOM) for more warnings to its members.

The group though will not support its members running foul of the law, alerted that 80 percent of its membership were small sized firms and could be put into extinction with regular fines and penalties.

Ayodapo Shoderu, new president of the NCRIB, who made the call during a courtesy visit on Fola Daniel, the commissioner for insurance, in Abuja said the Commission has done very well in ensuring compliance with the law by practitioners including broking firms.

Shoderu however appealed to NAICOM to always give warnings to erring members before severe penalties are brought to bear on them. “We strongly advocate that such companies could be given maximum of two warnings before being penalised.

“I like to use this auspicious platform to appreciate the roles of NAICOM in ensuring sanity in the brokerage sub-sector through the harmonisation of provisions of the law regarding NCRIB Registration and NAICOM licensing. The day is gone when unscrupulous brokers hide under either of the two bodies and by so doing mislead the insuring public. We pledge to do all within our powers to ensure maximum cooperation with NAICOM and to ensure that no charlatan breaks the ranks of insurance broking any more,” he said appealing for stronger collaboration.

Shoderu again implored NAICOM to consider a strong directive to underwriting companies on the need for prompt settlement of claims to clients. “Since the sustenance of any insurance industry is its ability to pay claims promptly, the Commission should be more stringent on its stand or directive to insurers on claims payment; the same way the Commission frowns at brokers with regards to remission of premium,” he said.

According to Shoderu, the Council is concerned about the illegal acts being perpetrated by some underwriters who wholly own or have substantial interests in insurance broking firms. “It is regrettable that in spite of the position of the law on this, many underwriters still flagrantly disobey the law to the detriment of the industry.