Consumers reject NAICOM’S directive on 3rd party insurance, call for reversal


The Insurance Consumers Association of Nigeria (INSCAN) has called on the National Insurance Commission (NAICOM) to reverse its directive on the increase of third Party Motor Insurance Premium in Nigeria.

This is contained in a letter signed by its National Coordinator, Chief Yemi Soladoye, and made available to newsmen on Sunday in Ibadan.

The News Agency of Nigeria(NAN) reports that NAICOM had recently issued a policy directive on the increase of third party motor insurance premium in Nigeria by 200 per cent.

The INSCAN demanded the reversal of the directive, saying it amounted to deliberate breach of the fundamental Principle of Utmost Good Faith and other decent regulatory principles guiding Insurance practice.

The association said NAICOM failed to
understand the full implications of its directive, saying those at the receiving end were insurance consumers who provided the accrued income to the entire Insurance Industry.

It said that NAICOM’s reliance on the comparison of what was paid as premium in other parts of the world as basis for premium increment burden on Nigerians was tantamount to daylight robbery on consumers.

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