VENTURES AFRICA – Three insurance companies in Nigeria have been suspended for irregular practises, based on a ruling by the National Insurance Commission (NAICOM).
The development comes after Nigeria’s Commissioner of Insurance, Fola Daniel, hinted last month that the regulatory body had placed ten insurance companies under regulatory watch, following “observed deficiencies relating to solvency”.
Reports indicate that the 6-month suspension ruling, which took effect from Monday, affected Alliance and General Insurance Company Limited, Alliance and General Life Assurance Plc and Fidelity Bond Insurance Brokers.
According to Business Day, a statement signed by NAICOM deputy commissioner (technical), Ibrahim Hassan on Monday indicated that the suspension was as a result of the non-compliance, on the part of the three companies, with relevant provisions of the National Insurance Commission Act 1997 and the Insurance Act 2003.
Some of the offences of the companies as listed by the commission were non-rendition of accounts, misrepresentation and non-disclosure of liabilities, non-remittance of premiums and commissions, and corporate governance abuses.
NAICOM added that the 6-month suspension may be extended until the violation of the provisions of the National Insurance Commission Act 1997 and the Insurance Act 2003 are addressed by the affected insurance institutions.
In May this year, Alliance and General Insurance Limited and Alliance and General Life Assurance Limited were queried by the Financial Reporting Council (FRC), formerly called Nigerian Accounting Standards Board, for preparing two different and inconsistent financial accounts for their 2010 business operations.