More than two months after the expiration of the deadline given to Insurance companies to clear the backlog of all outstanding clams in their books or risk facing sanctions, the National Insurance Commission (NAICOM) is yet to make a pronouncement on violators.
The insurance regulator had issued a circular dated July 6, 2015 directing that as a palliative gesture, the commission shall allow a grace period of September 30, 2015 for insurance companies to clear all backlogs of outstanding claims as provided in the Insurance Act.
Signed Mohammed Kari, the Commission threatened to invoke sanctions from October 1, 2015.
“From October 1, the commission shall evoke the full application of punitive sections of the Insurance Act, including but not limited to sections 8 (1) (m), 70(1) (b) and 70(2) without further recourse.”
“You would recall that the commission collated claims details from all insurance companies and complaints on delayed and unsettled claims from members of the insuring public in its efforts to verify the persistent complaints of the consumers of insurance about an unsavoury attitude of the providers that has brought the image of the industry to disgrace,” it said.
Industry watchers are disturbed about the regulator’s silence given the tone of NAICOM’s statement and the implications of delayed claims payment to the insuring public.