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Reps begin audit of insurance premium by MDAs

The House of Representatives has mandated its Committee on Insurance and Actuarial Matters to undertake a forensic audit of insurance premium paid by Ministries, Departments and Agencies (MDAs).

The House also urged the Committee to hold an investigative hearing involving all relevant stakeholders in the insurance industry to ascertain the veracity of claims that there are infractions by both MDAs and other institutions in the industry.

It also asked the MDAs to suspend all 2020 insurance renewal processes until there was a satisfactory resolution of all suspected infractions in their payment of premium.

These resolutions were sequel to a motion by the Minority whip , Gideon Gwani on: “Need to investigate alleged breaches, impunity and other infractions by some federal government institutions on insurance and actuarial matters and the need to ensure probity”, adopted at Thursday plenary.

Gwani revealed that there were allegations of infractions involving MDAs and insurance companies in the payment of insurance premium by government.

He argued that the action was detrimental to the citizens, noting that there is currently huge unsettled insurance claims in the country,  “due to the fact the premium meant for these payment was suspected to have been squandered by some insurance companies and a few individuals, and it is only forensic auditor will bring this to the fore”.

The lawmaker said: “Several billions of naira are suspected to be paid as premium annually on either non-existent assets or on unverifiable data with unadjusted premium in breach of Section 61 of Insurance Act 2003 by some Federal government institutions, which include but not limited to: Office of the Head of Civil Service of the Federation, National Youth Service Corp, some security Agencies in collaboration with Insurance Companies that do not pay claims “.

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