The National Insurance Commission, NAICOM is the umbrella body that is responsible for regulating the operation of insurance in Nigeria. The Act which was established in 1997 ensures that they regulate all businesses relating to Insurance.
NIACOM Responsibilities is not just limited to insurance companies alone, it extends even to the policyholders, beneficiaries and third parties. This implies that if you are a policy holder in one of the insurance companies in Nigeria and that insurance company fails to deliver their promises as stated in your policy certificate, you have the right to report the insurance company to NAICOM and they will be punished accordingly.
Functions of NAICOM in Nigeria Insurance Industry
- They provide and establishes procedures of how insurance business will operate in Nigeria.
- They are the one that will tell insurance companies how much to collect for an insurance premium.
- They act as a mediator between insurance companies and the federal government
- The protects the interest of the government and her citizens
- They act as a regulator between insurers and and policyholders in Nigeria
- They advise the government on insurance related matters
- They approves standards of operation and conditions of insurance business in Nigeria.
- They have the right to publish annual reports and statistics of the insurance industry
- They also contributes to improve the educational standard of Insurance related programs in Nigeria.
- They sanctions any insurance company in Nigeria that failed to deliver their promises as stated in the company’s policy handbook.
- NAICOM also carries out other insurance related functions as stated under the 1997 Act.
Governing Board of NAICOM
A section of the 1997 Act that governs NAICOM mandates that the commission would have a Governing Board members to pilots the affairs of the commission. The Board members are:
- A part time Chairman.
- The commissioner for Insurance
- Two deputy commissioners for Insurance
- One representative from the Ministry of Finance (rank of Directors)
- One Representative from Central Bank of Nigeria(CBN) (Rank of Directors)
- One representative from Insurance institute of Nigeria (CIIN)
- One representative of the ministry of Trade and Investment
- Three part time members to represent the interests of the general public.
Tenures of the Board Members
The board members are expected to spend a specific year in the office. Of cures there is no permanent position in some government organization. Below are the years each member of the board is expected to spend in the office.
The Commissioner For Insurance
The commissioner for Insurance is expected to spend 4 years in the office and may be reappointed for a another 4 years and no more.
Deputy Commissioner (Technical)
The Deputy commissioner Technical is expected to spend 5 years in the office and may be reappointed for another 5 years and no more.
Deputy Commissioner (Finance and Administration)
The Deputy commissioner finance and administration is expected to spend spend 5 years in the office and may be reappointed for a another 5 years and no more.
Operational Management at NAICOM
The Management of NAICOM operates under three divisions. Below are the list under which they operates.
1. Commissioner for Insurance’s Division
- Legal and Board Secretariat
- Corporate Affairs
- Information Technology
- Research, Statistics, and Corporate Strategy directorate
2. Technical Division
- Inspectorate Directorate
- Authorization and Policy Directorate
- Supervision Directorate
- Enforcement and Compliance Unit
- Complaint Bureau Unit
3. Finance and Administration Division
- Finance and Accounts
- Administration and Human Resources
The NAICOM office address is at 1239, Ladoke Akintola Boulevard in Garki II; Abuja.
Visit NAICOM Official website for more information
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