The bad side of the coin

The National Insurance Commission (NAICOM) a few days ago published in its website consumer complaints of unpaid claims by insurance companies, with most of them coming from weak firms that were already under regulatory watch.

Yes, it did not sound pleasant for most of the insurance companies and their chief executives, who felt that some of the claims may me false after all. While others also think, that NAICOM could have consulted them on each case before making the publication, even as some claim that some of the complaints have been resolved and even claims paid.

But the good thing, which NAICOM also believes is that insurance companies must going forward be more responsible to their obligations and make sure all necessary gaps are closed.

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The essence is to increase consumer confidence in the industry, which is a necessary quality for increased penetration and growth of the industry. The issue of unpaid claims has been recurring in the industry, and this NAICOM wants to see end if the industry must be on the path of growth.

The data from NAICOM shows that aggrieved policyholders with 1,582 complaints are owed in excess of N24.59 billion and $22.56 million over past years.

According to NAICOM, Industrial and General Insurance (IGI) got the highest complaints of 327, African Alliance Insurance 282 and Standard Alliance Insurance 229.

Determined to sanitise the insurance industry and stop frivolous excuses by insurers, industry regulator, NAICOM had threatened that insurance companies would henceforth pay for all cases resolved through its intervention.

NAICOM had charged insurance companies to operate ethically and live up to their claims payment responsibilities, as they have to pay for the time spent by NAICOM in resolving issues between them and their policyholders.

NAICOM also charged the operators to settle all outstanding claims and see reasons to settle claims.

To give consumers opportunity to launch their complaints, NAICOM has launched a Portal.

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The portal offers a streamlined and user-friendly platform for addressing all insurance related complaints.

The Commission is urging the public to effectively utilise the platform to reach out to the Commission on all Insurance related complaints.