By Alex C
The Chief Executive Officer, FBN Life Assurance Limited, Mr Val Ojumah, has said the enforcement of ‘No premium, no cover,’ a policy initiative of the National Insurance Commission as provided in the Insurance Act 2003, will lead to increased liquidity, higher returns on investment and timely claims settlement.
In a statement on Friday, he said, “No Premium No Cover” a provision in Section 50 (1) of the Insurance Act of 2003 states that “the receipt of an insurance premium shall be a condition precedent to a valid contract of insurance and there shall be no cover in respect of an insurance risk, unless the premium is paid in advance.”
Ojumah said the insurance industry and the insurance consumers would be the ultimate beneficiaries of the policy, which became effective from January this year.
He explained that it would enhance adherence to best practices and professionalism in the sector and ultimately promote insurance penetration and patronage.
“The policy provides an excellent platform for the sector to raise the bar of service excellence and responsiveness when it comes to claims settlement. All of these will lead to a better image for the industry, increased confidence in the business from consumers and prospects alike and better return on investments for all stakeholders,” he said.
According to him, the current regulation by NAICOM is a welcome development.
He said, “The policy again will save the industry billions of naira loss on premium receivables as well as millions spent on pursuing premiums.”
Ojumah noted that FBN Life aligns fully with the regulation in line with its commitment to best practices as well as good corporate governance.