Matthew Otoijagha
A Non-Governmental Organization (NGO), Transparent Protection Ltd/Gte has threatened to sue the National Insurance Commission (NAICOM) over the newly released guidelines for State Insurance Producer (SIP) policy.
The NGO’s solicitors, Mike Onyeka & Associates, in a letter to NAICOM, said the Commission acted ultra vires its powers under Section 49 (1) (b) of the NAICOM Act 1997, which empowers it to make guidelines for insurance institutions only.
It made this known in a letter titled: “Notice of Intention to Sue Pursuant to Section 51 of the National Insurance Commission Act, 1997”, dated December 3, 2018.
The reliefs to be claimed by the NGO are, a declaration that the purported “State Insurance Producer” operational guidelines 2018 are ultra vires the powers of the Commission; a declaration that the said guidelines violated Sections 34 and 36 of the Insurance Act, 2003 and are contrary to Section 49 (5) of the National Insurance Commission Act 1997, and any other Order or other Orders as the Honorable Court may deem fit to make in the circumstances”.
The letter reads: “We refer to a recent publication by National Insurance Commission (The Commission) titled: “State Insurance Producer Operational Guidelines, 2018”, expected to come into effect on January 1, 2019.
“The said guidelines ultra vires the powers of the Commission as enshrined in the National Insurance Commission Act 1997 and Insurance Act, 2003, and we hereby give you notice of our client’s intention to sue the Commission as follows:It said the guidelines on “State Insurance Producer” issued by the Commission violated Sections 34 and 36 of the Insurance Act, 2003, and is contrary to Section 49 (1) (b) of the National Insurance Commission Act 1997:
Through the guidelines on “State Insurance Producer” the Commission has purportedly created “Corporate Insurance Agents” in the states, contrary to Sections 34 and 36 of the Insurance Act 2003. 2. By issuing the said guidelines, the Commission, without reference to the National Assembly, has amended the provisions of the Insurance Act 2003.
Contacted, the Commission said it is not bothered by the threat. While reacting to the development, NAICOM’s spokesman, Rasaaq Salami said the Commission is not shaken by the threat to be sued.
He stated that the Commission has acted in the best interest of the industry, pointing out that the Commission will continue to introduce policies that can grow the industry.