The Insurance Consumers Association of Nigeria (INSCAN) has expressed support for the ‘No Premium, No Cover’ policy of the National Insurance Commission (NAICOM), saying it conforms with Section 50 (1) and (2) of the Insurance Act 2003.
In a release signed by Rear Admiral Isaac Areola (rtd), National President and Mr. Julius Bruce, National Secretary, INSCAN stated amongst others:
- That our Association is in total support of the enforcement of section 50 (1) and (2) of the Insurance Act 2003 by the National Insurance Commission (NAICOM) with effect from 1st January 2013 as the provisions relate to the Insured, the Underwriting Companies and the Insurance Brokers. We hereby enjoin the Nigeria Insurance industry to consequently establish the “Premium Financing” concept as a line of business in the manner it obtains in other jurisdictions to solve this very simple problem.
- That an Insurance company will be justified to repudiate any claim as from the aforementioned date on which no premium has been paid except as provided in Sec 69 of the Insurance Act 2003 regarding Third Party Liability Claims.
- That an insured person need not pay the total annum premium debited at the inception of cover but the Insurance Company will be justified to pro-rate its cover to the extent to which the deposit premium is able to carry the risk.
- That the Insurance companies should recognize the fact that the effective date of the enforcement is 1st January 2013 and that we expect fairness,equity and good business relationship to prevail on all covers binded up to 31st December 2012 and thereafter.
- That we hereby enjoin all Insurance Brokers in Nigeria to comply strictly with the provisions of sec. 41 (1) of the Insurance Act 2003 as regards remittance of premiums so that the interest of the Insurance Consumers will not be prejudiced before the underwriters.
- That we also enjoin the Insurance companies in Nigeria to comply with sec. 70 (1) of the Insurance Act 2003 on payment of claims.
- Finally, that we are in full support of all the recent reforms and initiatives of the National Insurance Commission (NAICOM) in pursuit of its main duty of protecting the interest of the Insurance Consumers in Nigeria.