In the circular sent the Ministries, Departments and Agencies (MDAs) the Minister stated that “Any MDA or organisation found culpable would be sanctioned accordingly. To this end, all MDAs and other stakeholders are enjoined to render their returns on premium collection and remittances to NAICOM as enshrined in the guideline.”
Ngama stated that in furtherance of the ministry’s resolve to end the menace and the era of non-remittance of insurance collections and premiums as well as consolidate the gains of the ongoing efforts in sanitising the insurance industry, NAICOM had issued guidelines on insurance premium collection and remittance compliance in accordance with the provision of Section 50(1) of the Insurance Act 2003. Hence, any contract of insurance entered into without payment of full premium in advance shall be legally unenforceable.
The Minister pointed out that inspite of the yearly budgetary provisions for insurance, government still has total premium debts of N24billion being owed insurance companies by MDAs as at January 2012.