By Agency Reporter

The National Insurance Commission has said that the operating licence of the Investment and Allied Assurance Plc remains valid after announcing the suspension of the management of the company last week.

A statement from NAICOM on Monday said that, in the interim, NAICOM, as the insurance regulatory authority, assumed control of the company and, appointed a team of tested professionals to manage the affairs of the company for an initial period of six months.

This development, the statement added, followed reports of findings from routine inspection of the company by the commission and the failure of the management of the company to satisfactorily correct material lapses observed and brought to its attention by the commission.

NAICOM said in the statement, “ The exact exposure of policyholders in this company will be determined by the interim management, based on returns rendered in the fourth quarter of 2010. The amount due to policyholders as at December 31, 2010 is N122m, consisting of unearned premium and outstanding claims of N90m and N32m respectively. The interim management will be expected to deal expeditiously with all valid claims due for payment.”

The statement said that the situation of the company would be reviewed after the initial six months of the interim management to ascertain remedial action (if any), following which any other necessary action to safeguard the insuring public would be announced.

 

Source: Punch