Standard Alliance Insurance Plc, has accused Nigerian Insurers Association (NIA) of malice in the way and manner it executed the company’s expulsion and subsequent publication in a national newspaper.
The underwriter through its solicitor Ebun-Olu Adegboruwa (SAN) in a letter, “Re: Purported Expulsion of Standard Alliance Insurance Plc from The Membership of Nigerian Insurers Association, July 5, 2021” said the company was denied right to fare hearing before proceeding to publish its expulsion and has demanded that the association should immediately withdraw the letter of suspension, termination and expulsion not exceeding seven days and pay N10bn as damages for loss of reputation resulting from the malicious publication.
The solicitor stated that the allegation of “failing to meet their obligations to policy holders thus negating the basic principle of insurance” given as the reason for the expulsion and subsequent publication of the names of three insurance companies including his client in national newspapers does not apply to Standard Alliance and, negates fair hearing and malicious in execution. The law firm provided statistics for payment of claims made to claimants between 2018 and 2019, and also 2020 in this order: N2.70bn, N1.90bn and N1.14bn. This according to the solicitor were made available to the concerned NIA committee but were jettisoned.
But the solicitor insists that fair disciplinary process which the Membership/Discipline/Legal Matters Committee which invited his client to clear itself from the plethora of allegations against the firm, suppressed and circumvented the defence of Standard Alliance because of the soaring interest of the chairman of the Association, Mr Ganiyu Musa whose company, Cornerstone Insurance Plc is currently in court with Standard Alliance.
Satisfied that its client had been unfairly treated Adegboruwa said the association erroneously, without proper investigation proceeded to effect termination of membership of the association, February 18, 2021. Subsequent to this, the letter addressed to the Director General, Nigerian insurers Association, Mrs Yetunde Ilori, said the NIA of circumvented Standard Alliance’ right to fair hearing as guaranteed by the 1999 Constitution, insisting that there is nothing in the Association’s constitution or within professional ethics in the insurance industry which entitles the Association to publish to the general public such expulsion and cleared that it was done with malice and calculated to damage the credibility and reputation of his client to the insuring public and indeed the whole world.
“In the light of the foregoing, we have our client’s firm instructions to demand the immediate withdrawal of the letter of suspension, termination and expulsion not exceeding seven (7) clear days from the date of receipt of this letter. the same to be published with an unconditional apology in all the national newspapers wherein it was advertised, with similar or greater prominence. In addition, our client demands from the Association, the payment of N10,000.000.000.00 (Ten Billion Naira Only) as damages for loss of its reputation resulting from the malicious publication,” he said.
Standard Alliance solicitor demanded that if at the expiration of the seven clear days from the date of receipt of the letter, the contents of the letter are not met, his client shall have no further recourse to NIA but the law firm will proceed to execute further instructions to explore all lawful means of redress against the Association. including taking steps to nullify the purported expulsion and to seek damages.
