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Chuks Udo Okonta
Insurance brokers have expressed misgivings over a statement credited to the newly elected Chairman of Nigerian Insurers Association (NIA) and Chief Executive Officer, Old Mutual (Nigeria) Limited, Segun Omosehin, that gap existing between the underwriters and brokers, is the major issue responsible for the late payment of claims to families of departed Civil Servants.
The NIA Chairman, was said to have made the statement during a meeting organized by the Head of Civil Service of the Federation, Dr. Folasade Yemi-Esan, with underwriters of the ‘Group Life Insurance Policy for Federal Civil Servants’, in Abuja
Inspenonline gathered from brokers that such a statement shouldn’t have come from the Chairman of NIA, adding that he portrays that there is a gap between the operators that is inimical to the peace and collaboration already formed over the years.
Inspenonline gathered that the allegation has also led to a campaign by some brokers to boycott the forthcoming professional forum to be organized by the Chartered Insurance Institute of Nigeria (CIIN), which is expected to bring all insurance practitioners together.
Some of the brokers craved for unity among operators from the various arms of the industry, so as to solve the apathy on insurance business.
Head of Civil Service of the Federation, Dr. Folasade Yemi-Esan, at the event, tasked insurance practitioners to be alive to their responsibilities in settling outstanding group life claims amounting to 1,841,558,893.42.
Dr. Folasade Yemi-Esan, decried the lackadaisical attitude of insurance companies over non-payment of civil servants’ death benefits, whilst expressing displeasure with the continuous poor performance, noting that “the dead cannot fight for themselves.”
She lamented that, despite the Federal Government’s effort to improve the welfare of families of deceased workers through the prompt release of funds for the payment of death benefits, the underwriters and brokers are frustrating the efforts by their unserious attitudes.
The HOS stated that their non-performance was unacceptable and must be remedied.
According to her, the meeting was necessary to bridge the gap that exists between the Underwriters and Brokers as it was unreasonable to continue doing the same thing repeatedly without achieving meaningful results.
“If the Brokers are no longer relevant, then they should be blacklisted,” she added.
She informed them that payment of insurance claims is not rocket science, stressing that the Office of the Head of Service performs a similar function by settling backlog of claims not covered by the present arrangement, seamlessly.
The Key Performance Indexes (KPIs) on settlement of claims as at September, 2022 indicates that the total number of claims reported was 776; number of claims paid was 357; total sum on claims reported, 4,201,392,384.27; number of awaiting EDVs from HoS/MDAs 101; total amount paid 1,574,709,562.12; number of awaiting DVs from LEAD Underwriter 150 (2,626,682,822.15), total amount expected from EDVs 785,123,928.73, number of incomplete documentations 168 and total outstanding claims is 1,841,558,893.42.
Dr. Yemi-Esan further stated that from the breakdown of the report, there is a clear indication of a huge gap between the number of claims reported and those paid, adding that there is the need for improvement from the Insurance service providers, as there is always room for other alternatives.
Omosehin, expressed his gratitude to the Head of Service for her concerns and show of outright displeasure with their low performance.
He made a firm commitment to support the Head of Service by doing the necessary to bridge the gap existing between the Underwriters and the Brokers, which he identified as the major issue responsible for the late payment of claims to families of departed Civil Servants.