NAICOM Declares Zero Tolerance for Non-Payment of Insurance Claims
The National Insurance Commission (NAICOM) has issued a strong warning against any insurance company that fails to settle claims made by its policyholders. The Commissioner for Insurance, Olusegun Omosehin, made this declaration during a joint press conference with the Federal Road Safety Corps (FRSC) in Abuja on Thursday.
Omosehin emphasized that both the FRSC and the general public are encouraged to report any irregularities or poor treatment by insurance companies, with NAICOM committing to address any complaint swiftly. He reassured the public that any complaint regarding claim settlement would be treated promptly.
In a related development, the FRSC called on NAICOM to create a technology-based system to verify insurance certificates, addressing the growing issue of fake insurance certificates, which undermine the integrity of the industry. The FRSC’s Group Commander for Training suggested that a streamlined, efficient system is needed to authenticate or verify insurance certificates in order to combat fraudulent practices.
In response, Omosehin confirmed that NAICOM is working on implementing electronic claim settlements to increase public trust and ensure faster processing. He added that NAICOM has established a complaints bureau to handle public grievances, with a guarantee that complaints would be processed within 24 hours.
Omosehin also highlighted the ongoing efforts to increase insurance capital, which is currently under review in the National Assembly. This move is intended to ensure that only financially sound operators are able to manage claims effectively.
Both agencies have committed to developing an electronic verification system for third-party insurance certificates for motorists, aiming to enhance transparency and reduce road accidents.
“The NAICOM is committed to resolving any claims-related issues promptly, and we are fully dedicated to ensuring that insurance companies meet their obligations,” Omosehin stated.
FRSC Corps Marshal, Shehu Mohammed, also expressed the Corps’ readiness to collaborate with NAICOM to enforce and promote road safety, emphasizing their preparedness to implement the third-party insurance scheme nationwide.
