National Insurance Commission (NAICOM) has revealed that its mediation and intervention strategies resulted in the settling of 15 complaints involving 174 claims worth more than N182.321 million in the first quarter of 2010 .NAICOM’s image maker, Mr. Lucky Fiakpa explained in a statement at the weekend that three out of the settled complaints were started and settled between January while the other 12 were cases whose correspondences started the previous year.

Mr. Fiakpa observed that efforts by the apex insurance regulatory body aimed at protecting the insuring public seems to be yielding positive result given responses being received from the general public.Apparently excited at the way the Commission handled his claim issue, an Assistant Director with the National Institute for Policy and Strategic Studies (NIPSS) wrote to the Commission to express his feelings as follows: " let me respectfully thank you and your management for the prompt action that compelled the insurance company to settle my claims after 987 days. It paid the sum of N338, 895.60 inclusive of the accrued interests for the period it held the money", he disclosed.

Also, a Loss adjuster also wrote to the Commission stating, "We wish to confirm that we have received the insurer’s cheque for the amount involved in full and final settlement of their indebtedness to our organization. We hereby register our profound appreciation and gratitude for your prompt intervention and immediate conclusion of the matter". Mr. Fiakpa indicated that a total of 142 correspondences were received between January and March 2010 stressing, that 72 of the correspondences were fresh complaints. This represents a difference of two cases compared to the 74 complaints received during the same period last year.

Continuing, he confirmed that an adjudication meeting was held at the Lagos Control office on February 18, 2010 to address a complaint which was received from Prosperfunds Limited. According to him, Prosperfunds had complained that five insurance institutions issued their guarantee bonds in various sums of money in their favour and when there was a default, the insurance companies refused to settle the claims with incidental interests.

Consequent upon the intervention of the Commission through the Bureau Adjudication window, the issue between the complainant and Crusader General Insurance Limited was resolved and a cheque of N389,021.78 had since been issued to the complainant as full and final settlement.Three out of the remaining four of the other cases however remained unresolved because the matters were pending in Court at the instance of Prosperfunds.

The fourth being against Investment & Allied Assurance, arose from an attempted acquisition of First Chartered Insurance Company Limited by it. When the complaint was forwarded to Investment & Allied Assurance it responded that the acquisition had not been approved by the regulators.Other cases which were slated to be adjudicated at the same time with the Prosperfunds’ case did not take place as a result of inefficient handling of mails which resulted in late dispatch of invitation letters, he said

NAICOM’s spokesman said that the analysis of the received complaints revealed that most of the complaints were centered on the following issues.

1. Pension: There are considerable numbers of complaint relating to pension and deposit administration. These complaints give reasonable grounds for concern as the amounts involved are in billions of Naira.

2. Educational Endowment Products: A number of complaints relating to nine policies were received in relation to educational endowment products. Analysis of the complaints, reveal that the contention does not squarely rest on the payment of claims but on the quantum of payment, especially upon the surrender of the policy. It was observed that the computation of the surrender value payable often leads to a reduction of about 50% of the sum contributed.

3. Mergers & Acquisitions: The inability to resolve some of the complaints was predicated upon the fact that such complaints relate to acquired/merged companies. The challenge being faced in this regard is the claim by some companies that the acquisitions and mergers have not been approved by the appropriate authorities.

4. Bonds: There is a growing increase in the number of complaints relating to advanced payment guarantee and performance bonds issued by some insurance companies. This necessitates the need for the Commission to focus on and investigate the internal mechanism and procedure for issuance of bonds by insurance companies.

5. Transfer of life portfolio: Arising from series of complaints against Capital Express Insurance Company relating to life policies transferred to it by NEM, Capital Express & NEM were engaged into correspondences at the instance of the Commission. Read more..