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Brokers to pay N2.5m for revoked licence

By on March 18, 2013

NATIONAL Insurance Commission (NAICOM) has warned that any broker that loses its licence as a result of infraction would be asked to pay a penalty of N2.5 million.

The Commissioner for Insurance, Fola Daniel, made this known at the council meeting of the Nigerian Council of Registered Insurance Brokers (NCRIB) in Lagos.

He urged brokers to avoid anything that would make NAICOM revoke their licences, adding that any broker who subverts the industry’s rules and has his licence revoked, would pay the new processing fee of N2.5 million.

Meanwhile, the President, NCRIB, Mrs Laide Osijo, has appealed to brokers to cooperate with NAICOM in the implementation of the new premium regime, stressing that they should avoid any infraction that might lead to sanctions.

She stressed that the council had gathered from members and underwriters that the public and government were already adjusting to the new premium rule. She called on insurance operators to embark on enlightenment of client on the new rule.

She said: “Reports reaching us from the underwriters and brokers indicate an adjustment to the new rule by insurance clients, including the government.

“From my findings, it has become necessary to advise brokers to cooperate with NAICOM in the implementation of this rule as well as avoid any infraction that may lead to sanctions by the commission.”

Osijo said the ‘no premium no cover’ is the best thing that can happen to the insurance industry. She said: “The money in our hands is better than expectations; it beats our imaginations. So many brokers have testified to the workability of the policy. You can’t believe the amount of premium we have received in my office this year so far as a result of the policy because we refused to give them cover on credit.”

She insisted that the law is there and has come to stay for the good of the national economy, the insured as well as the operators in the insurance industry in the country. She said: “It is a fantastic thing happening to the insurance industry and it is going to benefit everybody, whether you are an underwriter or a broker, even the public, because if you pay your premium on time, nobody will tell you stories the moment your claim falls due.”

 

[National Mirror]