Posted by The National Insurance Commission (NAICOM) has been encouraged by members of the Insurance Consumers Association of Nigeria to overturn a recent regulation that would have increased the cost of third-party automobile insurance nationwide.
The group pointed out that the economic situation, which is affecting citizens more severely, made it necessary for NAICOM to revoke its decision.
A few days ago, NAICOM reported an increase in third party motor insurance premiums for various categories of automobiles across the nation ranging from 200 to 400 percent.
In response, the insurance consumer association labeled the conduct as self-serving.
Chief Yemi Soladoye, the association’s national coordinator, stated this on Tuesday.
In a statement made accessible to kuryaloaded on Tuesday, Soladoye characterized the raise as harmful to Nigerians in general.
In the public’s best interest, he suggested that the agency change the policy.
Soladoye claimed that such a sudden statement was an intentional violation of the core idea of good regulatory standards while also urging that the policy be changed.
He claimed that customers are even more convinced that the new directive’s motivations are self-serving, haughty, and harmful to their interests, which the agency was created to defend.
Speaking further, Soladoye said that the current economic climate would make it more difficult for many families across the nation if the new instruction were to be implemented.
He said, “We hereby write with respect to your Circular No.: NAICOM /DPR/CIR.46/2022 dated December 22, 2022, increasing the Third Party Motor Insurance Premium in Nigeria by 200–400% for various categories of Motor Vehicles and, by implication, giving the insuring public of Nigeria only one (1) week notice to comply.
“We hereby demand that the directive be revoked since it amounts to a willful violation on your part of the core principle of the Utmost Good Faith and other decent regulatory norms that underpin insurance practice. The following facts serve as the foundation for our request that the Directive be reversed.
“Given the foregoing information, we hereby come to the conclusion that your policy directive on the increase in the TPM premium was not subjected to civilized business practices, professionally accepted insurance principles, transparent customer-oriented regulations, or humane consideration of the economic situation of the majority of Nigerians at the time before you hastily passed same.
“The Nigeria Insurance Consumers are further convinced that the motivation behind your Directive is self-serving, haughty, and harmful to their interest which you are established to protect and therefore demand that you reverse same in the interim while due consideration is given to the gray areas of the Directive,” they say.