Reps Vows To Investigate Insurance Violation By MDAs
The House of Representatives has resolved to investigate breaches, impunity and other infractions of some federal government institutions on insurance and actuarial matters. To this end, the Green Chamber has mandated the House Committee on Insurance and Actuarial Matters to engage a forensic auditor to ascertain the level of misapplication of premium.
The resolution was a sequel to the passage of a motion brought before the House by a member, Gideon Gwani (PDP Kaduna) with the title: “Need to investigate into the breaches, impunity and other infractions of some federal government institutions on insurance” brought under Matters of Urgent Public Importance.
The House is also involving all relevant stakeholders to identify any breaches and ascertain the veracity of the suspected infractions by the aforementioned Institutions.
The lawmaker while moving the motion said: “The House notes Section 88 (1) and (2) of the 1999 Constitution as (Amended) and also the mandate of Committee on Insurance and Actuarial Matters.”
The Chairman of the House Committee on Insurance, Rep Darlington Nwokocha supported the proposed probe saying it will bring sanity into the insurance sector.
He also said he was in support of the recapitalization of the insurance sector to allow the sector to become more relevant and trusted in the country.
He further said “as provided by Order Eighteen (18) Rule Fifty-Five (55) of the House Standing Order which provides for oversight of insurance Companies that takes cover on government properties, ensuring diligence and adequate insurance policies covering all federal government properties and Agencies and review of their annual budget estimates.
“These institutions are currently renewing their Insurance with suspected existing breaches which will put Nigeria and Nigerian populace at serious economic and social disadvantage hence Nigeria will lose Billions of naira thereby worsening the political and social disequilibrium the nation is currently facing.
“Aware that the Low Retention capacity of Dollar Denominated Businesses in Nigeria has a direct influence on Low Human and Financial Capacity in the Nigerian Insurance Industry.
This has created room for massive cessions and retrocessions of insurance businesses outside Nigeria.
“Consequently, not fully exhausting the capacity of the Nigerian insurance industry by giving all Registered Insurance and Reinsurance Companies in Nigeria the right of the first refusal depletes Nigeria’s Foreign Reserve.
“Also aware that this practice of domiciling some of the insurance ventures outside the country tremendously promote Money Laundering/Illicit Financial Flows to the tune of several Billions of Naira in the Insurance sector.”
He also expressed concern that there are huge unsettled life claims in Nigeria due to the fact the premium meant for these payments were suspected to have been squandered by some insurance companies and few individuals, and the only forensic auditor will bring this to fore.
The motion passed without hitches when the Speaker, Rep Femi Gbajabiamila called for a voice vote.
