Stakeholders Call For Insurance Extant Law Review
By Ngozi Onyeakusi
Stakeholders in the financial services sector have called for review of insurance industry’s extent laws to boost performance.
Financial operators made this known during the national insurance brokers conference and exhibition, organised in Lagos by the Nigerian Council of Registered Insurance Brokers with the theme, ‘Insurance industry: Survive, thrive’.
Speaking on the possible action to ensure optimal operation of insurance industry in Nigeria, the Managing Director/Chief Executive Officer, The Infrastructure Bank Plc, Adekunle Oyinloye, said, “Government intervention in the review and strengthening of extant legislations on insurance in Nigeria is one area. The Insurance Act 2003 and the National Insurance Commission Act 1997 in particular require better implementation and enforcement.
“For instance, Section 64 of the Insurance Act makes compulsory insurance of building under construction which is more than two floors.”
While the general implementation of the Insurance Act has left more to be desired, he said the limitation of liability on third party insurance was too small in line with the present day economy.
Oyinloye said, “Several sections of the insurance Act have also been badly implemented. We cannot overemphasise the need for an adequate legislation and policy to create operational environment.”
The President, NCRIB, Mr Shola Tinubu, said in terms of ensuring more effective legislation, the council had been quite proactive in making suggestions and input into legislation coming in form of guidelines to the broking sector.
He said, “Without any equivocation, the relationship between the NCRIB and the National Insurance Commission has improved, despite several challenges dotting our path. We are all witnesses to the progress recorded by the council in reducing the regime of fines and penalties usually imposed on brokers several months ago, principally due to lack of knowledge or understanding requirements expected of them by the regulator.
“Happily, this trend has changed with better collaboration between the two institutions. It is my belief that with understanding and cooperation we shall turn all our perceived
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