The National Insurance Commission (NAICOM) on Tuesday released guidelines for Market Conduct and Business Practice for all Insurance institutions in the country.
The Commissioner for Insurance (CFI) Mr Fola Daniels, represented by the Director of Authorisation and Policy Directorate (NAICOM) , Mr Piu Agboola, presented the guidelines at the 2015 Maiden Insurance Mega Conference in Abuja.
The CFI said the commission was releasing the guidelines in exercise of the power conferred on it by provisions of section 49 (1) of National Insurance Commission Act 1997.
According to Daniel, the release of such guidelines is the beginning of Risked Based Supervision in Insurance Industry of Nigeria.
He said the guidelines were partly an extract from the World Bank Risk Based Supervision.
Daniels said the guidelines, among others, set out the framework for fair policies procedures and effective claims management.
They also include trade practices and fair treatment of customers, operations, pricing, commission and associated returns as well as foreign facultative reinsurance placement by brokers.
Others are appointment, operation, expansion and documentation, registration requirements, accounts, returns and International Financial Reporting Standard harmonisation.
According to Commissioner some of the objectives of the guidelines are to set out minimum standards required from insurance institutions in their dealings with clients, policy holders and shareholders.
“It is meant to established strong market conduct among practitioners and stakeholders and serve to reduce mistrust that may exist between clients and insurers” he said.
He said the guidelines condemned unfair trade practices and customers maltreatment among others.
Daniels said under the guidelines obtaining money or property by means of any untrue statement of a material fact or any omission of a material fact necessary could attract a jail term .
He said that the claims management required each insurer to also develop, document and implement claims management policies and procedures for all its lines of business.
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