Underwriting firms settle N11bn outstanding claims
Insurance companies in the country were able to pay about N11 billion to settle all outstanding claims in their books, owed consumers for over three years.
The National Insurance Commission (NAICOM) had, in 2015, mandated insurers to settle all outstanding claims from their books or risk sanctions.
The commissioner had, last year, equally collated claims details from all insurance companies and complains on delayed and unsettled claims from members of the insuring public in its efforts to verify the persistent complains of consumers of insurance about the attitude of the providers that has brought the image of the industry to disrepute.
Some of the delayed and unsettled claims have been hanging for over three years and more.
It was revealed that insurers that were guilty hurried to settle all outstanding claims in their books for fear of being sanctioned.
Commissioner for Insurance, Mr. Mohammed Kari, said the response from insurers to the mandate edged up the confidence level in the insurance industry.
However, Kari noted that companies that were not able to meet the deadline have been penalised appropriately with further sanctions placed on them.
According to NAICOM, in its continued effort to sanitise the industry and restore the confidence of the insuring public, all insurers are directed to handle all claims strictly in accordance with the provision of the Insurance Act, 2003.
By our Correspondent
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