The Insurance Consumers Association of Nigeria (INSCAN) has called on the National Insurance Commission (NAICOM) to reverse its directive on the increase of third Party Motor Insurance Premium in Nigeria.
This is contained in a letter signed by its National Coordinator, Chief Yemi Soladoye, and made available to newsmen on Sunday in Ibadan.
The News Agency of Nigeria(NAN) reports that NAICOM had recently issued a policy directive on the increase of third party motor insurance premium in Nigeria by 200 per cent.
The INSCAN demanded the reversal of the directive, saying it amounted to deliberate breach of the fundamental Principle of Utmost Good Faith and other decent regulatory principles guiding Insurance practice.
“We hereby write with respect to your Circular No.: NAICOM /DPR/CIR.46/2022 dated Dec. 22, 2022, increasing the third party motor insurance premium in Nigeria by 200-400 per cent for different categories of motor vehicles.
“And by implication, giving only one week notice to the insuring public of Nigeria to comply. We demand the reversal of the directive as it amounts to deliberate breach of the Fundamental Principle of Utmost Good Faith and other decent regulatory principles that guide insurance practice,” it said.
The association said NAICOM failed to understand the full implications of its directive, saying those at the receiving end were insurance consumers who provided the accrued income to the entire Insurance Industry.
It said that NAICOM’s reliance on the comparison of what was paid as premium in other parts of the world as basis for premium increment burden on Nigerians was tantamount to daylight robbery on consumers.
“Though, you threatened to sanction your Insurance Operators that fail to comply with your directive come Jan. 1, yet, the truth is that operators and NAICOM will benefit from the windfall accrued from the directive. The insurance consumers are, in the real sense of it, the ones being sanctioned,” it said.
The INSCAN recalled that enough time was given to the public for feedbacks and adjustments to be made on the recent cases of currency redesign as well as cash withdrawal limit introduced by the CBN.
It said the almost 20 million Motor Insurance Consumers in Nigeria deserved more than a week notice for compliance, describing the duration as a great insult to the collective intelligence of Nigerians.
The association said it had read over 500 public comments by Nigerians on the directive, saying the reputation slowly built for the Nigeria Insurance Industry was being eroded by the series of condemnations.
It said that practitioners as well as the various arms of the central government of Nigeria were being disparaged, cursed and vilified.
“How much has your commission paid out to victims and customers of Proscribed Insurance Companies over the past 20 years as required under Sec. 78 of the Insurance Act 2003 to justify astronomical increase in Premium amount?
“Where is the report of an ad hoc committee required to be set up under Sec. 52 of the Insurance Act 2003, stating the imperative of increasing Insurance Premium by a whooping 200 per cent?
“We also know that the referred Sec. 52 of that Insurance Law does not confer arbitrary powers on you because Insurance is a business affected by Public Policy and otherwise it becomes legalised robbery,” it said.
The association said that the predictable outcome of the directive would be substantial increase in the number of fake Insurance Underwriters in Nigeria.
“You are definitely aware of the fact that even at the current N5,000 MTP Premium, many Nigerians still patronise the fake underwriters. And this is not because these Nigerians cannot afford the N5,000 but because they don’t see any benefit be it under your genuine or the fake cover,” the association said
It said that the directive would garner more money to the pockets of NAICOM, insurance operators and more hardship to the Nigerian Insurance Consumers.
“To what extent have the interests of the Policyholders of the Insurance Underwriters, whose licences you revoked in the past one year, been protected?
“How much have you paid to the various Fire Brigades in Nigeria as Fire Service Maintenance Fund as prescribed under Sec. 65 of the Insurance Act 2003? But still, you are quick to increase the Premium burden on the largely dissatisfied Insurance Customers in Nigeria,” it said.
The INSCAN lamented the increment without due consideration for the feelings of the consumers, particularly in Nigeria, where the good customers who didn’t make claims are never rewarded.
The association said that failure to reverse the obnoxious directive would put NAICOM on record as the regulator with the highest level of impunity and insensitivity in Nigeria
It stated that NAICOM’s policy directive was not subjected to civilised trade practices, professionally-accepted insurance principles, transparent customer- oriented regulations and humane attention to the economic situation of most Nigerians.
The association said that consumers were further convinced that the motive behind the directive was self-serving, arrogant and detrimental to their interest.
It said NAICOM was established to protect consumers, demanding reversal of the policy pending proper consideration of the grey areas of the directive.
NAN reports that INSCAN, an affiliate of the Federal Competition and Consumers Protection Commission of Nigeria (FCCPC), was established in 2010.
It was established to speak for the aggrieved Nigerians on insurance matters and promote the adoption of insurance mechanism in Nigeria, among others.
Savings bonds: DMO announces 2023 first offer
The Debt Management Office (DMO) on Monday announced as its first bonds issuance for 2023, two Federal Government of Nigeria (FGN) Savings Bonds for subscription.
According to a statement by the DMO, one was a two-year FGN Savings Bond due in Jan. 11, 2025, at the interest rate of 9.600 per cent per annum.
The other was a three-year FGN Savings Bond due in Jan 11, 2026, at the interest rate of 10.600 per cent per annum.
The DMO said that the opening date would be Jan. 3, while the closing date would be Jan. 6, and settlement date, Jan. 11, while coupon payment dates would be April 11, July 11, Oct. 11and Jan. 11.
“They are offered at N1,000 per unit subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million. Interest is payable quaterly while bullet repayment (principal sum) is on maturity,” it added.
The DMO said that FGN Savings Bonds qualified as securities in which trustees could invest under the Trustee Investment Act.
“They also qualify as government securities within the meaning of Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) for tax exemption for pension funds. They are listed on the Nigerian Stock Exchange Limited and qualify as liquid asset for liquidity ratio calculation for banks,” it said.
It noted that the bonds were backed by the full faith and credit of the FGN and charged upon the general assets of the country.
My govt hasn’t marginalized any tribe or part of Borno, Zulum tells Marama community.
AHMED MARI, Maiduguri.
The Borno State Governor, Prof. Babagana Zulum says that his administration has not marginalised any tribe or part of the state, and assured the people of Marama community that his administration will continue to provide dividends of democracy to the people of the area,.
Zulum, while speaking at a Bura Cultural Day organised by the Marama Community Development Association (MCDC) in Marama town, Hawul Local Government Area on Monday, said despite the numerous projects executed by his administrative in Southern part of the state, expressed dismay over claimed of marginalization by Prof. Hassan BDliya who accused the state government for marginalizing Bura communities in southern part of the state.
“For somebody like me, I think it is an insult on me for somebody to talk about marginalizition, looking at the numbers of mega projects that we have initiated to this very important Local Government Area”, the governor added.
He said even though he is Kanuri by tribe, but he is fair to all minority tribes and he would not marginalize any section of the state.
“For me I think Borno State is one, yes I am Kanuri by tribe and under no circumstances since I assumed office as the Governor of Borno State, I decided to sideline any tribe in Borno. I was not happy with the speech of one of your elders, because this administration has performed better in Southern Borno than even in Northern Borno”, he added.
He explained that, in the history of Borno State, he was the only Governor to appoint a Christian from Southern part of the state as the head of service.
He said “this is for the first time Borno government had Christian head of service, I believe we are doing our best but we are all human beings, if there is anything wrong we did to the Bura community, we will rectify our mistake by the God grace”.
“What we did in terms of capital projects in this part of the state is not obtainable in Borno Central and Northern Borno. We constructed so many roads and primary healthcare, we built various mega schools including Biu High Islamic School, we built several churches, we empowered your women and youths with capital and skills acquisition, among other things, all in Bura community”.
He cautioned people to think before speaking to avoid saying things that may bring disunity among the people in the state, adding that that under his watch, no section of the state will either be discriminated or marginalized,
Earlier speaking the Guest speaker, Prof Hassan BDliya, one of the elders of Bura community accused Borno State government of marginalizing Bura community saying that Kanuri tribe been majority has dominated the affairs of the state.
Also commenting, Chairman of Hawul Local Government Area, Inuwa Bwala apologised to Governor Zulum on behalf of the Bura community for the claim of marginalization.
N250 m grant: Al-Qalam varsity lauds BUA Group
Al-Qalam University Katsina, has commended the Chairman, BUA Group, Alhaji Abdulsamad Rabiu, for granting a N250 million infrastructure development grant for the institution.
The University’s Vice-Chancellor, Prof. Nasiru Yauri, made the commendation in a statement he personally signed and made available to the News Agency of Nigeria (NAN) in Sokoto on Monday.
According to Yauri, the grant, which was provided through the Abdulsamad Rabiu Africa Initiative (ASR Africa), has a lot of impact toward addressing the infrastructure deficit in the tertiary institution.
“This gesture is of great importance to our education system and it will continue to benefit our educational system.
“Moreover, I want use this medium to appreciate ASR Africa’s support to Nigerian tertiary institutions as one of the biggest educational interventions by a non-government actor in Nigeria and the rest of Africa.
“The recently announced ASR Africa infrastructure development grant to 22 tertiary institutions in Nigeria amounted to a total of N5.5 billion,” he said.
The vice-chancellor expressed optimism that the ASR Africa grants would help to develop the capacity of tertiary institutions and empower them to make meaningful contributions to national development.
He called on the beneficiaries to reciprocate the invaluable gesture of the philanthropist by putting the grants to good use.
