Home Insurance Digest Claims settlement key to public confidence in insurance – NAICOM

Claims settlement key to public confidence in insurance – NAICOM

CHRIS EBONG, Asst. Bus. Editor

Claims administration is a major component of risk management. In an industry where members of the public clamour for indemnification when loss occurs the only language understood by a policy holder is claims payment.
Claims represent compensation by an insurer to a policyholder who has been paying his premium regularly to get an insurance cover.
Most times claims settlement becomes controversial leading to litigation and  name calling culminating in bad image to the entire insurance industry, particularly in Nigeria.
This public perception about the industry has been haunting the sector overtime until recently when the regulatory authorities, the National Insurance Commission (NAICOM) and the Nigerian Insurers Association (NIA) had to intervene through deliberate policy framework that, settlement of genuine claims must not, in any way, be delayed beyond the constitutional timeframe.
Also  both bodies have set up separate Complaint Bureau to mediate on issues of claims. The NAICOM also in 2015 gave a matching order to all insurance companies to pay up all outstanding claims in their books as at end of September. In spite of that  report has it that some insurance companies are still finding it uneasy to pay genuine claims as at when due.
Against this backdrop, Daily Champion investigation has revealed insurance companies that are actually paying claims and those who are not.
Observing that the insuring public is still having a phobia for insurance, the immediate past Commissioner for Insurance (CFI) Mr. Fola Daniel had emphasised the need for insurance companies to publicise their claims payout as one of the steps to change the bad public perception and rekindle confidence in the sector.
The CFI, Alhaji Mohammed Kari told journalists recently that the Commission’s paramount interest is the consumer protection and that the Commission would not hesitate to take steps that would rekindle the public faith in insurance. He said to inspire public confidence on the sector,   the operators, should learn to do things differently to be able to achieve new result.

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