NIA seeks enforcement of compulsory insurances | Independent Newspapers Limited
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Business, Insurance

NIA seeks enforcement of compulsory insurances

Posted: May 20, 2015 at 12:29 am   /   by   /   comments (0)

The Chairman of Nigerian Insurers Association (NIA), Godwin Wiggle, has appealed to the National Insurance Commission (NAICOM) to sustain its efforts in the enforcement of the compulsory insurances stipulated in the Insurance Act 2003.

He gave this charge during a meeting between the Commissioner for Insurance, Fola Daniel, and Chief Executive Officers of NIA member companies in Lagos recently.

Wiggle also sought the assistance of NAICOM in pursuing the amendment of the Companies Income Tax Act 2007 (CITA) to relieve insurance companies of the heavy tax burdens which is capable of inhibiting the desired growth of the market.

The NIA boss listed the giant strides the association made in recent times to include: strengthening of customer complaints bureau which is an alternative dispute resolution mechanism, awareness campaign to increase insurance education thereby bringing more people into the insurance net and the establishment of the Energy and Allied Insurance Pool to curb capital flight, increase retention and building capacity in Energy and Allied Risks underwriting.

He therefore urged Daniel to assist the association by supporting these and other initiatives in order to deepen insurance penetration.

“We thank you for this visit and urge you to support the Association in the drive to increase insurance penetration in Nigeria. We have taken some bold steps and we believe that they will complement the reform initiatives you have introduced. Your support is critical to the growth and expansion of the insurance market in Nigeria,” he stated.

Responding, Daniel challenged insurers to key into the growth agenda espoused by the government as a fall-out of the Insurance Summit held in December 2014.

While appreciating the role of insurance in national development, he said the major goals of the Summit was to enable the insurance industry deliver jobs and skills development, build consumer trust and public awareness, increase access to insurance and enforcement of compulsory insurances.  He therefore charged underwriters to own the deliverables from the Summit and ensure attainment of set goals.

He urged the association to help work out modalities at ensuring competitive and appropriate rates in the industry.

Daniel equally commended the association for setting up the Energy and Allied Insurance Pool and encouraged companies to key into the Pool arrangement in order to participate fully in the underwriting of Oil and Gas Insurance risks in the Nigerian market.