The National Insurance Commision
(NAICOM) on Friday declared zero tolerance for in-fighting and dirty
squabbles among board members of insurance companies.
The commission’s new policy was part of the fallout of its recent dissolution of the boards of some insurance companies.
NAICON, in statement , quoted Mr Fola
Daniels, Commissioner for Insurance (CFI), as saying that the commission
would henceforth sanction insurance companies infested with board
squabbles.
Daniels said that NAICOM’s action
stemmed from the effects of boards squabbles on the commission’s ongoing
coordinated effort in repositioning the nation’s insurance industry.
He said that the unethical and sharp
practices in the insurance industry would now become history, as the
commission mobilises professionals and resources toward making the
sub-sector drive the economy.
He also said that the commission had
dispatched final warnings to operators on its zero tolerance level in
providing a national seamless insurance service delivery.
“Specifically, the Commission has vowed
to wield the sledge hammer on operators, be it underwriters, insurance
brokers, loss adjusters and agents, that failed to comply with the
industry’s code of ethics” he said.
According to Daniels, some of the consequences of board infighting are financial reporting failures and ineffective directors.
The others are poor operational ethics,
lack of professionalism and negligence of policy holders and other
stakeholders of the company.
He said that insurance companies’ boards caught engaging in unscrupulous practices and squabbles would be dissolved forthwith.
The commission recently dissolved the
board of International Energy Insurance (IEI) Plc, on May18, 2015,
following prolonged board squabbles.
The commission also appointed an interim
board, headed by a former Director-General of the National Pension
Commission, Muhammad Ahmad; a former Commissioner, Securities and
Exchange Commission, Ms Daisy Ekineh and Mr Peter Irene, as Interim
Managing Director of the company.
Irene also described the commission’s intervention as a step to create neutrality towards ensuring peace and order in the company.
(NAN)
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