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By Ndubuisi Orji, Abuja
The House of Representatives, yesterday, mandated its Committee on Insurance and Actuarial Matters undertake a forensic probe of over N30 billion unsettled group life insurance claims of personnel of the Nigeria Police Force, Head of Service and Ministry of Defence.
The Committee is expected to report back to the House within four weeks for further legislative actions.
This followed the adoption of a motion by Sulaiman Gumi, calling for a probe of alleged “breaches and other infractions of some federal government institutions on insurance and actuarial matters using forensic auditors. “
Gumi, in his motion, attributed the unsettled claims to alleged non-compliance with Section 57 of the Insurance Act, 2023, and Section 4, Subsection 5 of the Pension Reform Act, 2014, among others.
According to him,”non-transparency and lack of accountability in insurance practice in Nigeria today have resulted in over N30billion unsettled claims in the group life insurances of the Nigeria Police Force, Head of Service (for Federal Civil Servants), and Ministry of Defence (for the Nigerian Armed Forces) because of no actuarial valuation, no gap analysis, and non-compliance with Section 57 of the Insurance Act, 2023, and Section 4, Subsection 5 of the Pension Reform Act, 2014, among other factors;
“We are aware that over $1billon that should have been retained in Nigeria if all insurance practitioners are given the option of the right of first refusal (insurance being more about risk bearing and sharing) is being taken abroad, which affects the nation’s economy, thereby always weakening our insurance sector and depleting our foreign reserve.
“These breaches and infractions have given rise to excessive cession and retrocession of businesses in breach of the Local Content Act to the extent that 90 per cent of the risks of some Federal Government organisations are placed outside the country.”
The lawmaker argued that the development “has led millions of families of the deceased Federal Government’s personnel that are the beneficiaries suffering because they were not paid the entitlement of their breadwinners.
“When paid, in some cases, unallowed deductions are made, thereby shortchanging them.”
Gumi expressed worry that “ the Committee on Insurance and Actuarial Matters letters to the Ministries, Department and Agencies like the Nigerian Ports Authority, the Nigerian National Petroleum Company Limited, National Emergency Management for either document to enable them oversight or appear before the Committee to address these issues are being treated with ignominy.”
He stated that if the trend is not checked, disregard for House summons, will in no time become a norm “that will negatively impact the overall oversight functions of the House of Representatives, if not nipped in the bud.”
