This is contained in a letter sent to NIA by the solicitor
of the insurer, Ebun -Olu Adegboruwa (SAN), dated July 5 , a copy of which was
made available to the News Agency of Nigeria (NAN) on Friday in Lagos.
The solicitor also demanded an immediate withdrawal of the
letter of suspension, termination and expulsion given to the underwriter within
seven days from the day of receipt of the letter.
It stated that the same should be published with an
unconditional apology in all national dailies wherein it was advertised with
similar or greater prominence.
NAN reports that NIA had on June 23, announced expulsion of
Industrial and General Insurance Co. Ltd (IGI) Niger Insurance and Standard
Alliance Insurance Plc as its members with effect from Feb. 22.
NIA said expulsion of the insurance companies was for failing to meet up their obligations to
policy holders and thus negating the basic principles of insurance.
Standard Alliance Solicitor alleged that the Chairman of the
NIA’ s Governing Council, Mr Ganiyu Musa, did not recuse from all deliberation
and eventual decision of the council in approving the purported expulsion of
the insurer, against which he had a pending grievance.
It explained that the process through which the insurance
firm was sanctioned was manifestly tainted with fundamental infractions and
circumvention of its right to fair hearing as guaranteed by the 1999
Constitution.
“The reason proffered for terminating the insurer’s
membership is glaringly false, considering that the company, in 2018, made a
cash premium of N3,757, 303,000 and paid claims of N2,707,875, 000, inclusive
of individual life policy claims.
“In 2019, the insurer made a cash premium receipt of
N2,427,120,000 and paid claims of N1,907,834,000, inclusive of individual life
policy claims.
“In 2020, due to the effect of the coronavirus pandemic
lockdown, the underwriter made a cash premium of N967,753,000 and had to resort
to other reserve funds to enable it pay claims of N 1,148 ,327,340, inclusive of individual life policy claims,”
it said.
According to the solicitor, the firm also settled all its obligations to NIA for
which the receipt was duly issued by the association on Dec. 22, 2020 .
The solicitor said : “If at the expiration of the seven days
from the date of receipt of this letter, our request on behalf of our client is
not met.
“We shall have no further recourse to you but proceed to
execute our clients’ further instructions to explore all redress against the
association, including taking steps to
nullify the purported expulsion and to seek damages.
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