Policies: NAICOM threatened with legal actions
A few weeks after the National Insurance Commission was forced to cancel its Tier Based Solvency Capital recapitalisation after some shareholders dragged it to court, the regulator is facing another legal threat for introducing the State Insurance Producers’ programme.
On November 20, the National Insurance Commission released the operational guideline to commence the operations of the SIP in the country.
In the guideline, the commission stipulated January 1, 2019, as the take-off date, and N2m licensing and registration fee for the operators.
But the President, the Nigerian Council of Registered Insurance Brokers, Mr Shola Tinubu, has said that the NCRIB had served NAICOM a 30-day pre-action notice to withdraw the SIP programme.
He also said that the brokers had engaged the service of a legal firm to fight NAICOM, if it refused to bow to its demand.
The brokers saw the SIP as a threat to the broking business because other non-insurance bodies would be licensed to do their kind of business.
Tinubu said, “In view of this, we have appointed a legal firm consisting of three senior advocates of Nigeria and would be engaging NAICOM on our behalf.
“Our lawyers have already served NAICOM, and in view of this notice, we can have dialogue. This is to protect the interest and businesses of insurance brokers.”
He said the brokers will resist any action that will allow non-professionals hijack 70 per cent of brokers’ business.
Another group, Transparent Protection Limited, had earlier expressed its intention to challenge NAICOM in court over its recent guidelines by which it sought to create corporate insurance agents in the various states of the federation.
According to the Programme Director, TPL, Godson Ibekwe-Umelo, the body is a pro-active, rights-based non-governmental organisation working for the promotion of insurance culture in Nigeria.
“TPL believes that in making the guidelines which are billed to come into effect on January 1, 2019, the regulatory body acted in excess of its powers as enshrined in the National Insurance Commission Act 1997 and Insurance Act, 2003,” he added.