By Sola Alabadan
For paying just paid $170,000 (N255 million) as the premium to insure the risk, a consortium of insurance companies in Nigeria paid claims of $55 million (about N83 billion) to Britannia-U Nigerian Limited, for the fire incident that affected the company.
This is contrary to the wrong perception among the other people that the Nigerian insurance industry has not been paying claims.
The company was paid this claim for the massive fire outbreak that razed the 4,000 barrels of crude oil per day capacity Britannia-U1 FPSO operated by Nigerian independent producer, Britannia-U Nigeria Limited, offshore Forcados in Delta State.
the Commissioner for Insurance and CEO, National Insurance Commission (NAICOM), Mr. Olusegun Omosehin, who disclosed this on Friday at the seminar organised by NAICOM for insurance journalists in Abeokuta, applauded the insurance operators for living up to expectation and paying the claim prompt settlement.
Omosehin,who was visibly excited by the industry’s ability to pay $55 million (N83 billion) claims to Britannia-U Nigeria Limited, stated that even the insured did not believe that the industry will have the capacity to pay the claim hence the reason why the case was reported to the National Assembly.
“Nigerian insurers have been paying claims and one major one is the Britainnia-U Nigeria claim that was initially estimated at about $72 million which was subsequently and finally adjusted for $55 million (N83 billion).
“Having adjusted a claim for N83 billion their perception, given what they heard, was, this people might not be able to pay. So they run to the National Assembly. The regulator was summoned and we were asked why are you people not paying. The reality is, there was no need for legislative intervention, and the claim was clearly discharged.
“The provision of the law with respect to timeline for settlement was 90 days because NIIRA had not been assented at that time. So the industry had 90 days and my explanation to the House was, calm down, these guys did not breach any provision, why do you want to descend on them? But, of course, I realized the need for the regulator to step in. So, we wrote to our entities and we gave them a timeline and immediately, the claim was settled.
“Honestly, I must tell you, I have never been proud of this market until that time. I confirmed to you the market has paid the N83 billion claim in full.
“The interesting part is that the premium for this risk was $170,000. The painful part of it is that the payment of this claim has not been publicized. Those are the things I want to see published.
NAICOM boss emphasized the need for industry players to publicize claims paid to change the negative perception by the public about the sector. “We cannot continue as a sector to keep quiet. Billions are being paid on an annual basis, yet people are saying insurance does not exist in Nigeria because they have access to the radio airwaves and those ones will go viral but the billions insurance companies are paying on an annual basis are not publicized.”
The Commissioner emphasised that in appreciation of the fact that insurance is a promise of protection, and its impact must be felt in the society, the promp payment of the claim is a proof that the industry is responsive and reliable when it comes to valid claims.
