The Nigerian Insurance Reform Bill, currently waiting for the president's assent, will create a compensation fund for victims of bankrupt insurance companies and a fund for uninsured road accident victims.
Mr Kunle Ahmed, chairman of the Nigerian Insurers Association (NIA), speaking at a quarterly press conference last week, said that a fund will be set aside to meet claims of policyholders whose primary insurance company is liquidated or faces challenges, addressing recent occurrences in the industry.
He indicated that the establishment of the two funds is expected to enhance trust in the insurance industry.
On the enforcement of third-party motor insurance in Nigeria, he commended the inspector general of police and the commissioner for insurance for their commitment to protecting Nigerians on the road, reported Business Day. He added that NIA members had reported an increase in the sales of third-party motor insurance.
He said the proposed reform law will overhaul the regulatory framework of the insurance sector in Nigeria.
The Bill also proposes higher capital requirements, “which we believe will lead to stronger and more virile insurance companies that can develop new products and address the pain points of consumers”, Mr Ahmed said.
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