NICON’s Suspension: NIA Gets Commendation

Mr. Stanley Ekhaegbai, Chief Executive Officer of Consumer Welfare Forum, has applauded the decision of the Nigerian Insurers association (NIA) over the suspension of NICON Insurance from membership of the association. According to him, the action of the NIA was an indication that the sanitisation process embarked upon by the regulator and players have started to yield dividends
The consumer analyst stated that ‘the insurance profession has been dragged in the mud for so long, due to flagrant disobedience of insurers to statutory provisions and ethical standards, which are critical to the sustainable growth of the industry.’
He equally tasked the National Insurance Commission (NAICOM) to continue to exercise its regulatory functions, adding that ‘If the Nigerian insurance industry must be sanitized, then operators must not only sit up, but must be seen to conform to global ethical practice in the interest of the industry.’
It would be recalled that the Governing Council of Nigerian Insurers Association (NIA), in its bid to abide by its pledge to accord consumers complaints top priority, recently suspended NICON Insurance plc, for its failure to appear before the Consumer Complaint Bureau (CCB).
According to the NIA chairman, Mr. Olusola Ladipo-Ajayi, sthe suspension will last for three months in the first count and could degenerate to expulsion, if the company do not do something to remedy the situation. In making the stand of the association known, the chairman said, “Following NICON’s decision not to appear before the Bureau, the Governing Council of the association, at its meeting of Thursday, January 26, 2012, resolved to suspend the company from the association,’ adding that, ‘that decision has been communicated to the company.’
He reiterated that the complaints bureau was set up to resolve complaints arising from the insuring public against the insurers. The chairman expressed confidence in the bureau, noting that since its inception two years ago, it has resolved over 20 cases at no cost to the insured.
 ‘Members respect the decision of the bureau,’ he stated, which attests to the effectiveness of the complaints bureau. He added that ‘If they do not, then it would be assumed that they have exercised their function of opting out of the association.’
Ladipo-Ajayi emphasised that it was ‘trying to popularise this bureau so that people can know that at no cost to the complainant, they can go there as quickly as possible, so that they can get a fair hearing devoid of all the trapping and legal rigmarole of the court.’
He explained that there has been a dwindling premium over the years, adding that if the image of the industry must be redressed, then members must be seen to be disciplined when they fall short of the regulatory provisions.