AIICO Insurance Plc has finally repudiated the claim made by Rockmountain Petroleum Development Company (RPDC) and has dared the insured to go to court. The claim arose following a blow-out and fire at RPDC’s Oil Well (OML 95) in Ondo State on May 14, 2020. The claim, which falls under AIICO’s Energy Package Insurance policy (Policy No. 702/00016/19/TQ/HO), totals $50,026,457.40 and additional ₦198,946,590. AIICO’s formal refusal to settle this claim was contained in a letter (sighted by Transparent Protection Ltd/Gte) dated November 13, 2024, signed by Peter O. Olalere of SPA Ajibade & Co. (AIICO’s Legal Counsel) AIICO’s refusal to settle this claim is despite the National Insurance Commission’s (NAICOM) clear directive after regulatory adjudication.

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For over four years, AIICO has delayed settling this claim, citing various reasons such as incomplete documentation and disputes over the insured’s operational status. However, NAICOM’s investigation has debunked these excuses, reinforcing the legitimacy of the claim. AIICO’s ongoing refusal to settle the claim, despite regulatory directives, highlights its disregard for the interests of policyholders.

Transparent Protection Ltd strongly condemns AIICO’s refusal to honour its obligation in this case and stands with NAICOM in demanding accountability from insurers. In light of the foregoing, we urge NAICOM to urgently review the capacity of AIICO to continue to write oil and gas insurance business in Nigeria. Such a measure is crucial to prevent other businesses in the oil and gas sector from falling victim. Also, the general public is advised to be wary of dealing with AIICO Insurance Plc.

AIICO’s behaviour cast doubts as to its ability to continue to settle genuine claims, especially with respect to its oil and gas insurance portfolio. The Insuring public in Nigeria deserves insurers who are committed to ethical practices and prompt claim settlements.