Oluwakayode Adelowokan
The National Insurance Commission
(NAICOM) has step up fight against the high rate of unethical practices that
have bedeviled the industry.
This was after the release of
guidelines to moderate how commissions, rebates and returned premiums should be
handled.
With the guidelines, NAICOM said it
has become illegal for any Insurance Institutions to solicit, offer or allow
commissions and/or rebates in the transaction of insurance businesses except as
provided by the extant Insurance laws and guidelines.
Operators have be barred from
henceforth not to solicited, deducted, offered or paid over-Riding Commission,
business acquisition fees and other similar fees not provided for by the
Nigerian Insurance Laws.
According to NAICOM, an insurer,
who grants or receives a rebate, offer, demand, pay or receive commission
contrary to Section 53(1)-(3) of the Insurance Act 2003 may, in addition to the
penalty prescribed by Sections 53(4) and 76 of the Insurance Act, 2003, shall
be liable to other penalties as prescribed.
“Each Insurer shall submit a
quarterly return on the rebates, brokerage commission and other fees paid out or
payable on all its production during the preceding quarter to the Commission,
not later than 14 days from the end of the quarter”, NAICOM said.
An operator Ezekiel Oloriegbe
reacting to the new initiative by NAICOM said: "The industry has to be
sanitized a bit, or we will all fall together from the activities of the crooks
who have infiltrated the industry, and are gradually chasing out the real
professionals who are unable to cope with the crookedness now rampant."
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