NAICOM publishes consumer complaints of unpaid claims by insurance companies

The National Insurance Commission (NAICOM) a few days ago published in its website consumer complaints of unpaid claims by insurance companies

The National Insurance Commission (NAICOM) has taken the initiative to publish a list of consumer complaints concerning unpaid claims by insurance companies on its website. The majority of these complaints, most of which span over past years, arise from weak firms that are already under regulatory watch.

This move has raised varied opinions among industry stakeholders. Some believe that publishing the complaints in an attempt to shame companies into action is not the best approach, considering the time and resources invested by the regulator in mediating and attempting to resolve the issues. They suggest that perhaps focusing on closing the gaps in communication and reaching mutual agreement would be more effective.

Others, however, believe that publishing the complaints is a step in the right direction, especially as it serves as a deterrent to companies attempting to evade their obligations.

The data from NAICOM reveals that aggrieved policyholders have a total of 1,582 complaints and are owed in excess of N24.59 billion and $22.56 million.

The complaints cover various types of insurance, with IGI having the highest number of complaints at 327, followed by African Alliance Insurance with 282 complaints and Standard Alliance Insurance with 229 complaints.

In a move to deter frivolous excuses by insurers, industry regulator, NAICOM has threatened that insurance companies would henceforth pay for all cases resolved through its intervention.

The Commission’s Deputy Commissioner for Insurance, Technical, Michel Akpoviota, stated this at the 51st edition of the Chartered Insurance Institute of Nigeria (CIIN) President’s Dinner in Lagos.

According to him, the regulator had charged insurance companies to operate ethically and live up to their claims payment responsibilities.

Akpoviota said, “We have charged them to pay for the time spent by NAICOM in resolving issues between them and their policyholders. We also charged them to settle all outstanding claims and see reasons to settle claims.

“We have launched a Portal for consumers to launch their complaints. The portal offers a streamlined and user-friendly platform for addressing all insurance related complaints.

“We are urging the public to effectively utilise the platform to reach out to the Commission on all Insurance related complaints.”