By Henry Uche, [email protected], 08032741427
National Insurance Commission (NAICOM) has threatened to sanction Ministry, Department or Agency (MDAs) found contravening any of the provisions of the Guidelines for Insurance of Government Assets and Liabilities for Ministries, Departments and Agencies of Government and other stakeholders, issued on October 28, 2023. The affected officer(s) shall be reported to the Office of the Secretary to the Government of the Federal Republic of Nigeria (SGF).
NAICOM stated this in its guidelines, stressing that it shall be illegal to inflate the premium payable by MDAs in respect of the insurances of the government assets and liabilities.
It noted that an MDA shall not pay premiums in excess of the actual premium on an insurance policy that may result in refund of the excess amount paid or with the intent of returning the excess in any form, by cash or otherwise to the insured, its agents or any party thereafter.
The insurance industry regulator maintained that any MDA that acts contrary to the above shall be deemed to have contravened the regulation.
“The individual officer(s) involved shall be deemed to have committed a Gross Misconduct and may be reported to the appropriate authority.
NAICOM) in a move to ensure ethical practices in the insurance of government assets and liabilities also enjoined all MDAs not to interact, engage or transact any insurance business with any insurance institution unless the institution is duly licensed by it.
NAICOM submitted that MDAs shall ensure that all government assets and liabilities in their custody/supervision are adequately insured at all times, stressing that all MDAs shall procure insurance cover for adequate protection of Government assets and liabilities including mandatory items to be insured which falls under compulsory insurance policies and that this would however, be subject to budgetary appropriation by the MDA (approved budgetary provision).
It said MDAs shall provide information annually to the commission on all its insurances, adding that in compliance with the premium collection and remittance provisions in the market conduct guidelines, insurance cover for an MDA shall only be provided on a strict No Premium No Cover basis.
The Commission noted that MDAs shall effect payment of premium to enable renewal of their insurances not later than the effective date of the insurance contract.
Similarly, NAICOM said it would blacklist any insurance institution that fails or refused to comply with any provisions of the Guidelines for Insurance of Government Assets and Liabilities for Ministries, Departments and Agencies of Government and Other Stakeholders, issued on October 28, 2023, shall be penalised in accordance with extant insurance law and regulation.
NAICOM stressed that penalty on non-performing operators could be extended to blacklisting the defaulters from handling government insurance and/or the suspension or withdrawal of their operating licenses, as the case may be.
It added that multi -sectoral committee set up to oversee the full implementation of compulsory insurances which include government’s assets have commenced meetings, stating that the committee has also raised four sub -committees to ensure easy implementation of the stipulated rules.