NAICOM Mute On A & G Insurance & Fidelity Bond Insurance Brokers’ Suspension

by Free Insurance advice on February 23, 2013 · 1 comment

in FAQS on Insurance, Insurance in Nigeria, Insurance Industry Trends, Insurance Terms and Terminologies, Latest Insurance News, Other Resources & Tips, Titbits

The Six-month suspension slammed on Alliance and General (A & G) Insurance Company Ltd,  A & G Life Assurance Plc and Insurance Brokers by the National Insurance Commission (NAICOM) from transacting further insurance business has lapsed.

The order expired on February 5, 2013 having begun on August 6, 2012. However, the insurance regulator, NAICOM, is yet to make any pronouncement whether the companies have been left off the hook or the suspension period has been extended.

It is unclear whether the companies had met the requirements specified by NAICOM for the lifting of the suspension. NAICOM had then confirmed that the suspension order may further be extended at the end of six (6) months until such a period when the Commission is satisfied that:

1. The violation of the provisions of the National Insurance Commission Act 1997 and the 2003 has been addressed, and

2. The method of transacting business is no longer hazardous to the policyholders and potential clients.

Experts are of the opinion that NAICOM’s silence might not be unconnected with the pendency of the  suit instituted against the Commission by A &  G Insurance. They opine that NAICOM might also have softened its ground realising the gaps in the existing insurance laws from where it derives its powers. A new insurance law is in the works which would give more powers to the insurance regulator.

NAICOM had suspended Alliance and General Insurance Company Ltd, A&G Life Assurance Plc and Insurance Brokers from transacting further insurance business for a period of six (6) months with effect from August 6, 2012 for gross violations of the relevant provisions of the National Insurance Commission Act 1997 and the 2003.

The offences of the companies included non-rendition of accounts; misrepresentation and non-disclosure of liabilities; of premiums and commissions, and corporate governance abuses. The Financial Reporting Council of (FRC) had prior to the suspension indicted  Alliance & General Insurance Limited  (also known as A & G) and Alliance & General Life Assurance Limited  for preparing two financial statements for the same year end (2010).

Shortly after the suspension order, A & G Insurance had proceeded to the law court to challenge NAICOM’s decision.

 

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{ 1 comment… read it below or add one }

alliance and general March 11, 2013 at 10:03 am

we are going to succeed…………….

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