Brokers Decry Moves by NSITF to Grab Workmen’s Compensation Act

While the dust raised by proposed laws and regulation of insurance practice as it concerns the brokers is yet to settle, there are indications that individual brokers and the National Council of Registered Insurance Brokers (NCRIB) are not at ease with the current moves by the National Assembly to repeal the Workmen’s Compensation Act. Reacting to the recent Bill by the Nigerian Social Insurance Trust Fund (NSITF) to the National Assembly to repeal the Workmen’s Compensation Act and transfer same to it, Mr. Adewale Shittu, managing director of Destiny Brokers expressed dismay at the moves, which has gone through second reading in the House of Representative.
He warned that the “sensitive position which brokers hold in the growing insurance market in Nigeria must not be truncated by any individual or group.” Rather than fanning the embers of disunity   the brokerage chief wants the operators and the relevant authorities to give brokers a more comfortable platform to serve the underwriting arm better.” In recent times, there have been conflicts between the brokers and the regulating authority, National Insurance Commission (NAICOM) over new laws and regulations set to be adopted soon.
Also reacting, Oluwole Adedayo, veteran insurance broker expressed dismay at the level at which insurance brokers have been treated without appreciating the fact that brokers have been the pillar of the success record of the industry today. He lamented that a profession which contributes over 70 percent to underwriter’s volume of business could be recklessly debased by critical stakeholders in the business. As expected, the NCRIB have also raised similar objections to the proposal to repeal the workmen’s compensation act. It would be recalled that Dr Teslim Sanusi, President, Nigerian Council of Registered Insurance Brokers (NCRIB), recently called on the National Assembly not to repeal the Workmen’s Compensation Act, warning that such move would impact negatively on the fragile industry. Sanusi told the News Agency of Nigeria (NAN) in Lagos.
The NCRIB boss called on stakeholders to kick against the move because the industry was still recuperating from the effect of the Pension Reform Act, which earlier took pensions business out of its jurisdiction, warning that if the present move by the National Assembly is allowed to succeed, it would have an adverse effect on the premium income of the sector.Sanusi charged brokers to rise up to oppose the move so as not to allow another injury to be inflicted on brokers and the industry at large. He stressed that going by the likely effects of the proposal it could lead to a collapse of the insurance industry,Sanusi had used the forum “to draw attention to the new move by NSITF to repeal the compulsory insurance with all its benefits.” He informed brokers that the NSITF-sponsored bill seeks to transfer group life policies of public officers to the fund. “Considering the negative implications of such action for the industry, we have taken steps to ensure that such a move is stopped in the interest of the public and the industry," he said.