Fola Daniel, Insurance Commissioner
While insurance companies, insurance brokers and agents in the industry smile to the bank as a result of the strict enforcement of the ‘no premium no cover’ policy, loss adjusters are striving not to be left out in the celebration.
According to experts, loss adjusters would, going forward, be paid for their services as at when due because the underwriters would not have any hiding place, claiming that premium for the cover on which they mediated has not been paid.
Loss adjusters are independent claims specialists who investigate complex or contentious claims on behalf of insurance companies and help policyholders restore their property to full working order.
Traditionally, loss adjusters investigate the scene of an incident to establish the causes of the damage or destruction of the property and whether it is covered by the insurance policy. They then write a report for the insurer, assessing the validity of the claim and recommending appropriate payment.
Speaking on how the policy would benefit loss adjusters working for underwriters in the industry, the Managing Director of Staco Insurance Plc, Mr. Shakiru Oyefeso, said no operators would be left out in the celebration.
According to him, loss adjusters would be paid for their services to insurance companies as soon as the jobs are concluded because they insurer would no longer have the excuse not to pay immediately.
He observed that before now, many insurance companies would delay the payment of fees to loss adjusters on the ground that the premium for the cover, which gave rise to the claim they worked on has not been paid, stressing that this is no longer tenable.
“Loss Adjusters too would benefit from the no premium any cover policy because they would be getting paid for their services immediately. This is because insurers can no longer give the excuse that the cover has not been paid for, and as such, they would be paid for their services without any delay,” Oyefeso said.
Contrary to the expectation of many insurance stakeholders that premium income would nose-dive as a result of the enforcement of the “no premium no cover” policy in the industry, insurers and brokers have confirmed that they raked in more incomes in the first six weeks of ‘no premium no cover’ enforcement.
Attesting to this, the Managing Director of Sovereign Trust Insurance Plc, Mr. Wale Onaolapo, said the experience of his company has been good.
According to him, in as much as business written for the first month of the year has not fallen short of that figure for the corresponding period of last year, the good thing is that by the end of this month, the company would have received all the premium for the covers.
He said that his firm would not have to wait till the April or May to receive premium for covers, including the oil and gas business, adding that the premium would have hit the company’s account by the end of this month.
He also expressed his belief that insurance brokers are also happy with the policy since they do not need to wait for too long to get their own brokerage for businesses they brokered.
Also, the President Nigerian Council of Registered Insurance Brokers (NCRIB), Mrs. Laide Osijo, said, “We are coping very well with the policy, as far as my company is concerned, we have received in this month, more than what we normally get in a year.”
Last year, the National Insurance Commission (NAICOM) issued a ‘Guidelines on Insurance Premium Collection and Remittances’, signalling the death of providing insurance covers on credit and guiding both insurance brokers and underwriting companies on how to go about collecting and remitting insurance premium to beneficiaries.
The guidelines directs as follows: ‘All insurance covers shall only be provided on a strict ‘no premium no cover’ basis. Consequently, only cover for which payments have been recovered directly by the insurer or indirectly through a duly licensed insurance broker shall be recognisable as income in the books of the insurer.’