Speaking during the 2015 seminar for insurance correspondents, yesterday, in Benin City, Edo State, the commissioner for insurance, Mr Fola Daniel, said that the National Insurance Commission (NAICOM) has repented from charging offending companies penalties that does not deter them from committing more malpractices.
He said the commission is more determined to rid the sector of bad eggs in order to raise the level of trust in the industry.
“As people are becoming hardened, we are also re-strategising on how to more effectively deal with them. So for those complaining about the N200,000 or N500,000 penalties, we have repented, we won’t do that again. Instead, they will get N5 million, N10 million fines and multiples of that, so much so that the managing directors (MDs) will lose their jobs.
“At one of the meetings we had with insurance companies this year, I apologised to them for penalising them too minimally. I said, “We have been slamming you with penalties that are not deterring you from misbehaving.
We apologise, we will never do it again. Since the NAICOM started as a regulator we have never fined any insurance company up to N10 million but this year, a company paid N62 million.” N62 million is a shouting figure even for banking sector. It is not a common fine.
“If the insurance mechanism is abused such that they cannot pay claims, of what benefit is it to us?” Daniel queried.
He said that for the next three years the commission would be focusing on enforcement of public interest compulsory insurance, delivering jobs and skill development, which is about the agency reform system, building consumer trust and public awareness and increasing access to insurance. (Leadership)
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