NAICOM issues guidelines for State Insurance Producer

Kindly Share This Story:

The National Insurance Commission (NAICOM) on Tuesday released operational guidelines for State Insurance Producer (SIP) across the 36 states of the country, including the Federal Capital Territory (FCT).

The SIP whose key responsibility includes facilitating the sale of the compulsory classes of insurance within the state jurisdiction and all classes for its principal’s insurance, is also an agency of a state government licensed by NAICOM to provide intermediary services as defined by the guideline issued by the commission and also remunerated as by the provisions of the guideline.

According to the Commissioner for Insurance, Alhaji Mohammed Kari, the policy is expected to take off on January 01, 2019.

The guideline reads: “The State Government shall be responsible for all the acts, commissions and omissions of its appointed Insurance officer and every other staff in its employment acting on insurance related issues.

“Any disputes arising between a State Insurance Producer and an Insurer or a client, or any other person either in the course of its engagement as an intermediary or otherwise may be referred to the Commission by the person so affected; and upon receipt of the complaint or representation, the Commission shall conduct an enquiry or an inspection or an investigation on the complaint or the representation as may be necessary.”

“Once licensed to operate by the commission, the SIP shall enter into Memorandum of Understanding (MoU) as may be sanctioned by NAICOM, with approved insurance companies in its jurisdiction for the purposes of placement and management of insurance business within a state,” Kari said.

The NAICOM boss explained that while the SIP will be empowered to penalize defaulters according to the laws of the States, it will equally maintain proper records of individuals and organisations bound by the requirements of the compulsory classes of insurance and monitoring the compliance.

The apex insurance sector regulator has promised to open 20 new branch offices across the states of the federation for strict management and enhancement of insurance penetration.

This according to it, will not only deepen insurance penetration, but also assist the government in meeting its objectives and expectations with regards to the Economic Recovery and Growth Plan (ERGP) in the areas of job creation, poverty prevention and confidence in the face of risk.

Kindly Share This Story:

Related Post

Leave a Reply

Your email address will not be published. Required fields are marked *

amehnews greetings