By Nike Popoola

Tuesday, 30 Nov 2010

The Chairman, NICON Insurance Plc, Mr. Jimoh Ibrahim, has blamed the government for being part of the problems that the insurance industry is facing.

Ibrahim said this during the 14th Champion Newspaper Insurance Day with the theme, ”Nigeria at 50, Building an Insurance-driven Economy Amid Reforms,” in Lagos, on Tuesday.

According to him, the presidential houses, the fleets of government‘s cars and other government assets lack insurance cover.

He said, “To deepen the level of insurance penetration in the country and help to grow the industry, government should lead by example by insuring all its assets.

He noted that, of recent, there had been several regulations and enactments in the banking sector.

While comparing the regulation in the insurance sector with that of the banking sector, he said that the insurance industry remained the landmark to make the country‘s economy more progressive.

The NICON boss noted that the operation of the insurance business was different from that of the banking sector.

He said what was being practised in the banking sector could not be brought to the insurance industry.

Ibrahim said that the decision of the National Insurance Commission and the Central Bank of Nigeria to stop major shareholders from occupying seats on boards of companies was unacceptable.

Ibrahim, who is also the Chairman, Company‘s Allied Matters Act, said that the move was not in accordance with the CAC Act and that he would not hesitate to take legal action, according to the CAC Act, if the regulators violated the contents of the Act.

He recalled that he had earlier dragged the NAICOM to court when NICON Insurance and the Nigeria Reinsurance Corporation were unlawfully taken over by the government.

The Governor of Imo State, Dr. Ikedi Ohakim, urged insurers to wake up from their slumber and ensure steps to take the industry to a higher level.

He pledged his support to the growth and development of the country‘s insurance industry.

While stressing the relevance of the sector in driving the country‘s economy, Ohakim said that insurance was a veritable means of facing future challenges.

He said, ”The insurance operators should ensure the development of micro insurance in the country. The operators should participate in government so that they will be able to push the interest of the industry forward.”

The Chairman, Nigerian Insurers Association, Mr. Olusola Ladipo-Ajayi, urged the government to support the sector and ensure that the workmen compensation scheme was not removed from the insurance industry.

He also said that the association was working hard to revamp the image of the sector before the insuring public in order to gain back their confidence.

Part of the move, he said, was the association‘s complaint bureau, which would avail any displeased policy holder the opportunity to go to and lodge his complaint against his insurance company.

 

Source: Punch