A&G, Springlife fail to render 2012, 2013 accounts to NAICOM | Independent Newspapers Limited
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Business, Insurance

A&G, Springlife fail to render 2012, 2013 accounts to NAICOM

Posted: Apr 23, 2015 at 3:16 am   /   by   /   comments (0)

The National Insurance Commission (NAICOM) has disclosed that the trio of Alliance & General Insurance Company (A&G), Alliance & General Life Assurance Plc and Springlife Assurance Company are yet to submit their financial results for 2012, 2013 and 2014 to the commission.

This development took place in spite of the fact that section 26(1) of the Insurance Act 2003 stipulates that every insurer shall not later than 30th June of each year, submit to NAICOM, a balance sheet duly audited showing the financial position of the insurer and its subsidiaries at the close of the preceding year together with a copy of the relevant profit and loss account which the insurer is to present to its shareholders at its annual general meeting.

As stipulated in section 26(3) of the Insurance Act that “An insurer who fails, neglects or refuses to file the returns and accounts under this section commits an offence and is liable on conviction to a fine of N5,000 per day for each day of default” the only thing NAICOM can do is to compel the defaulting firms to pay the required fine.

For the affected life insurer, section 27(5) of the same Act states that “An insurer who fails, neglects or refuses to file the required returns or accounts under this section is guilty of an offence and liable on conviction to a fine of N15,000 per day for every day of default.”

In view if the fact that NAICOM believed that the sanctions provided by law for such infractions have not served as enough deterrent, the commission has already proposed an amendment to the law in this regard.

Daily Independent had earlier reported that more than 15 months after the close of year 2013, a total of six insurance companies are yet to submit their 2013 International Financial Reporting Standards (IFRS) based accounts to NAICOM.