The National Insurance Commission NAICOM, running with its bankable resolve to put the claims payments palava behind the industry, is crafting a framework that will be clear to all parties on time frame to settle claims because of the involvement of other actors like the insured, loss adjuster, other than the insurer.
In the coming framework which was stated by the Deputy Commissioner for Insurance, Technical, Dr. Usman Jankara, at a recent lecture in Lagos, the Commission working document would clearly highlight what notification entails, when is the point when all documents required for claim payment are provided.
Also to be cleared is what would happen when documents are not fully provided and what are the options available, so that there are no doubts around the claim processed for payment.
This Jankara advanced, is coming as an innovation in the Act, which not only reduced the time to settle certain classes of claims from the previous 90 days to 60 days, but the new law recognised a time frame to settle claims.
The DCFI said what is required of operators is to align their internal systems with the clear provision of NIIRA which is that the claim has to be settled within 60 days of notification.
He also pointed out that it is interesting that NIIRA imposes penalty on underwriters for not settling claims within the time limit provided or for delaying claims payment.
“It’s indicated you are going to pay the insured interest on the amount you ought to have paid over and above a CBN minimum interest rate. It also empowers NAICOM to impose sanctions on the entity for failing or delaying settlement of claims,” the DCFI stated.
