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House of Reps wants investigation into violations of insurance issues by FG agencies
The House of Representatives says it will investigate violations and other infringements of some Federal Government agencies on insurance and actuarial issues.
The House on Friday directed its Committee on Insurance and Actuarial Matters to engage the services of a forensic auditor to ascertain the misapplication of premium.
In a motion brought before the House by Gideon Gwani representing Kaura Federal constituency of Kaduna State titled, “Need to investigate into the breaches, impunity and other infractions of some Federal Government institutions on insurance,” he urged all relevant stakeholders to identify any breach and ascertain the veracity of the suspected infractions by the government institutions involved.
Moving the motion brought under Matters of Urgent Public Importance, Gwani 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, Darlington Nwokocha representing Isiala Ngwa North/South Federal Constituency of Abia State supported the proposed probe noting that it would bring sanity into the insurance sector.
Nwokocha expressed his support of recapitalisation of the insurance sector to allow the sector to become more relevant and trusted in the country.
“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,” he said.
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.
“I’m 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 retrogessions of insurance businesses outside Nigeria.”
He also expressed concern that there are unsettled life claims in Nigeria because the premium meant for these payments were suspected to have been squandered by some insurance companies and few individuals and the forensic auditor will bring this to fore.
“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.
The motion was passed when the Speaker, Femi Gbajabiamila called for a voice vote that was unchallenged.