The National Insurance Commission (NAICOM) has announced that insurance companies refusing to honor legitimate claims will face stricter sanctions. The Commissioner for Insurance and CEO of NAICOM, Olusegun Omosehin, made this declaration during an interactive session with journalists in Lagos over the weekend.
Omosehin emphasized that NAICOM prioritizes the prompt payment of genuine claims, and the commission has previously penalized companies failing to comply. He disclosed that NAICOM plans to increase the severity of punishments to deter other firms from engaging in similar practices.
Also read Lack of Nigerian Banks and Insurers in Maritime Finance Hinders Industry Growth, Say Stakeholders
The NAICOM chief encouraged policyholders to report any cases of denied claims to the commission’s complaint bureau, assuring that the regulatory body will act in good faith to ensure insurers settle valid claims.
Omosehin stressed that the best way to raise awareness about insurance is through the timely payment of claims, which leads to positive referrals from satisfied beneficiaries. He warned that companies failing to honor claims will face regulatory consequences if reported.
Also read NAICOM and Insurance Stakeholders Reaffirm Capacity to Underwrite Nigeria’s Aviation Sector
In addition, Omosehin vowed to hold managers of ailing insurance firms accountable, stating that they would be forced to return misappropriated funds and revive the companies they mismanaged. Those who fail to do so will be blacklisted and barred from holding positions within the insurance industry. Omosehin added that since taking office three months ago, his administration has been working diligently to reposition the sector for better performance.
