The Nigerian Insurance Reform Bill, now awaiting presidential assent, seeks to improve consumer protection by establishing a compensation fund for victims of liquidated insurance companies.
This was disclosed by the Chairman of the Nigerian Insurers Association, Kunle Ahmed, during a quarterly press conference in Lagos Tuesday, stating that the bill will also set up fund for uninsured road accident victims.
Ahmed described the Bill as a crucial piece of legislation intended to overhaul Nigeria’s insurance sector regulatory framework.
“The Insurance Reform Bill includes provisions designed to protect policyholders adequately. A fund has been set aside to meet requests of policyholders whose primary insurance company is liquidated or faces challenges, addressing recent occurrences in the industry,” he said.
Ahmed also mentioned that the bill includes a fund to support uninsured road accident victims.
He noted that these provisions of the bill are expected to build greater trust in the insurance industry.
“The bill also reflects increased capital requirements, which we believe will lead to stronger and more virile insurance companies that can develop new products, and addressing the pain points of consumers,” Ahmed stated.
On the ongoing Tax Reform Bill at the National Assembly, he explained that the NIA has made a representation to the government, stressing that part of the insurance premiums is allocated to shareholders and should be factored into the taxation.
“Changes to any tax bill could impact various sectors of the economy, including insurance. We have made a representation to the government regarding the taxation of insurance premiums, emphasising that some premium belongs to shareholders, especially on the life insurance side, and this concern is being taken seriously,” he added.
Ahmed praised the Inspector General of Police and the Commissioner for Insurance for their dedication to enforcing third-party motor insurance in Nigeria and ensuring the safety of Nigerians on the road.
He said “For us at NIA, the enforcement of the third-party policy is largely to the benefit of policyholders.
“Policyholders are entitled to compensation for their liabilities in terms of injury or death to third parties, which is unlimited.”
