NAICOM drags MDAs before SGF over contraventions on insurance of government asset

The National Insurance Commission (NAICOM) has threatened that any Ministries Departments and Agencies (MDAs) found to have contravened any of the provisions of the Guidelines for Insurance of Government Assets and Liabilities for Ministries, Departments and Agencies of Government and Other Stakeholders, issued on October 28, 2023, the relevant officer(s) shall be
reported to the office of the Secretary to the Government of the Federal Republic of Nigeria (SGF).

NAICOM stated this in the guidelines, stressing that it shall be illegal to inflate the premium payable by
an MDA in respect of the insurances of the government assets and liabilities.

It noted that an MDA shall not pay premiums in excess of the actual premium on an insurance policy that may result in refund of the excess amount paid or with the intent of returning the excess in any form, by cash or otherwise to the insured, its agents or any party thereafter.

The insurance industry regulator maintained that an MDA that acts contrary to the above shall be deemed to have contravened the regulation.

“The individual officer(s) involved shall be deemed to have committed a Gross Misconduct and may be reported to the appropriate authority.

NAICOM) in a move to ensure ethical practices in the insurance of government assets and liabilities also enjoined all MDAs not to interact, engage or transact any insurance business with any insurance institution unless the institution is duly licensed by it.

NAICOM submitted that MDAs shall ensure that all government assets and liabilities in their custody/supervision are adequately insured at all times, stressing that all MDAs shall procure insurance cover for adequate protection of Government assets and liabilities including mandatory items to be insured which falls under compulsory insurance policies and that this would however, be subject to budgetary appropriation by the MDA(approved budgetary provision).

It said MDAs shall provide information annually to the commission on all its insurances, adding that in compliance with the premium collection and remittance provisions in the market conduct guidelines, insurance cover for an MDA shall only be provided on a strict No Premium No Cover basis.

The Commission noted that MDAs shall effect payment of premium to enable renewal of their insurances not later than the effective date of the insurance contract.