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Published On: Wed, Mar 19th, 2014

NIA calls for review of Insurance Act 2003, others

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Stories from Ngozi Onyeakusi, Lagos

The Nigeria Insurers Association (NIA) has called for review of Insurance Act 2003, Cabotage Act 2003 and Oil Industry Content Development Act 2010.

NIA Chairman, Mr Remi Oluwude who made the call during an interactive session between the governing board of the National Insurance Commission NAICOM and insurance industry operators in Lagos stated that there was urgent need for government to amend the provisions of Insurance Act 2003 and regulation of insurance company investments in line with the realities of business.

“There is need to activate the various laws relating to Marine Insurance of refined petroleum products imported into the country.

The Insurance Act 2003, for instance, provides that all imports into the country must be insured with an insurance company registered in Nigeria.

This law is only observed in the breach. Consequently, we are seeking enforcement of the Cabotage Act 2003, review of the Insurance Act 2003 and the Nigerian Oil Industry Content Development Act 2010”, he reiterated.

Oluwude equally called for the review of the current restriction on investment to ensure safe but adequate returns to stakeholders for the viability of the industry.

“Investments on equities suffered losses in 2008 and 2009, yet insurers are expected to maintain the same proportionate level of investment in prescribed sectors”, he lamented.

He added that NAICOM needs to review its position on off-shore investment for the purpose of solvency calculation and actuarial valuation which the association has started discussing with the commissioner and his team stressing that there was need for Federal Government to support the quest for accelerated insurance penetration and density in Nigeria through micro insurance and takaful insurance.

“To enhance the development of these forms of insurance, there is need to enact laws that will guarantee government subsidy because the insurances are for the benefit of the poor who cannot afford conventional insurances. Without Government subsidy, agricultural insurance would be unable to play its role in the development of farming”, Oluwude pleaded.

Responding, the Commissioner for Insurance, Mr Fola Daniel assured that NAICOM will critically look into all the complaints in order to make amendments where necessary.


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