The Insurance Consumers Association of Nigeria has said that it is in full support of the enforcement of the “no premium no cover” rule with recent reforms and initiatives of the National Insurance Commission in pursuit of its main duty of protecting the interest of the insurance consumers.
In a statement signed by the National Secretary, ISCAN, Mr. Julius Bruce, on Friday, it said that after a meeting of its national executive, the state chairmen and coordinators, the association came up with some resolutions on the law, Section 50 (1) and (2) of the Insurance Act 2003.
The National President, INSCAN, Rear. Admiral Isaac Areola (retd.), said, the association was in total support of the enforcement of law, as the provisions relate to the insured, the underwriting companies and the insurance brokers.
It stated that, “We hereby enjoin the Nigerian insurance industry to consequently establish the premium financing” concept as a line of business in the manner it obtains in other jurisdictions to solve this very simple problem.”
According to the statement, an insurance company will be justified to repudiate any claim on which no premium has been paid except as provided in Section 69 of the Insurance Act 2003 regarding Third Party Liability Claims.
It added that an insured person needed not pay the total annum premium debited at the inception of cover but the insurance company would be justified to pro-rate its cover to the extent to which the deposit premium could carry the risk.
INSCAN enjoined all insurance brokers to comply strictly with the provisions of sec. 41 (1) of the Insurance Act 2003 as regards remittance of premiums so that the interest of the insurance consumers would not be prejudiced before the underwriters.
It also enjoined the insurance companies to comply with sec. 70 (1) of the Act on payment of claims.
“Finally, that we are in full support of all the recent reforms and initiatives of the National Insurance Commission in pursuit of its main duty of protecting the interest of the Insurance Consumers in Nigeria,” the statement added.
INSCAN stated that unless the “no premium no cover” provision was endorsed on any policy document being the evidence of the contract relating to a claim, or any other endorsement to that effect, the association will presume non-disclosure of a material fact on the part of any underwriter wishing to repudiate any legitimate claims on basis of this provision and, the association shall explore all legitimate means to pursue its members claims to logical conclusions.
INSCAN is a non-governmental, non-profit organization of the insurance consumers registered with the main objectives of protecting the general interest of the insurance consumers in Nigeria, fostering unity and progress between the insurance industry and the general public.
It creates awareness as to the importance of insurance and stands in the middle between the insurance companies and the insured whenever there is dispute for amicable resolution through compensation.