Rate Cutting In New Motor Insurance: NIA To Deal With Defaulting Firms
By Ngozi Onyeakusi– The Nigerian Insurers Association (NIA) said it will deal decisively with its members companies involved in defaulting in the implementation of the new rate for motor insurances fix by the National Insurance Commission (NAICOM).
The association said it has received reports that some insurance companies are selling motor insurance policy below approved rates and threatened to report defaulters to the Commission.
The Director-General of NIA, Mrs. Yetunde Ilori, stated this in a circular, titled, NIA.MTPC/YI/23, ‘Adherence To The Approved Rates For motor Insurance’, dated; May 24, 2023 and sent to all Chief Executive Officer of Member, General Business.
Mrs. Ilori noted that following the decision reached at the 2023 CEOs retreat in respect of the need to implement the new premium rates on motor insurance, it has become pertinent for the association to reiterate the need for companies to sell motor insurance policies at the approved rates.
She stated that secretariat has received reports that some companies are selling below the approved rates, stressing that this does not augur well for growth of the market even as it brings serious reputation issues to the industry.
She said the Governing Council is displeased with the activities of agents within licensing offices engaged by member companies to sell third party motor insurance at reduced rates and other such arrangements.
She said the NIA would not hesitate to report defaulting companies to NAICOM, adding that companies are therefore enjoined to ensure compliance to avoid regulatory sanction.
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