NAICOM resolves N1.22 billion claims dispute

THE National Insurance Commission (NAICOM), through its Complaints Bureau, facilitated the settlement of claims by insurance companies to the tune of N1.22 billion in the first half of this year. Overall, 52 cases were concluded by the bureau during the period.In the period under review, the Complaints Bureau dealt with a total number of 349 cases and held four adjudication meetings. Out of this figure, 86 of them were fresh complaints while the remaining (263) are existing/ongoing cases.The outstanding claims are currently receiving the attention of the commission, with a view of achieving a quick resolution to the satisfaction of all stakeholders, particularly, members of the insuring public.The Commissioner for Insurance, Fola Daniel, told The Guardian that the resort to the bureau for settlement of claims disputes by the insuring public is an indication of the level of awareness of this channel of dispute resolution in the commission.According to him, insurance companies have been made to accept the fact that it is no longer business as usual as their responses and compliance with the commission's directives had witnessed an improvement compared to previous periods.Consequently, he said, not less than 85 per cent of the insurance institutions responded to queries or directives issued to them for claim settlement during the period.Majority of the 15 per cent residual are largely claims already before courts of competent jurisdiction and therefore prejudicial for the commission to intervene, he said.The complaints received this year were mainly those involving non-settlement of claims on motor insurances, marine, life, bond issues and pension matters. The complaints were received from individual policyholders, beneficiaries, government agencies, SERVICOM, Legal Aid Council and Public Complaints Commission.Meanwhile, the countrys insurance industry paid claims amounting to N86.56 billion to individuals and corporate organizations last year.According to the yearly report of the Nigerian Insurers Association, the amount represents an increase of nine per cent over N79.33 billion paid in 2010.The risk managers said though the volume of business written by the market would continue to grow, however, the portfolio of claims will continue to rise with the coming into force of the Nigeria Oil and Gas Industry Content Development legislation and the Nigeria Insurance Market and Restructuring Initiative (MDRI) project on compulsory insurances initiated by NAICOM.
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