Nigeria Insurance Industry Bill 2024: A Preview 1
Senator Mukhail Adetokunbo Abiru (Lagos East)
The Nigeria Insurance Industry Bill 2024 is currently going through hearings and debates in the National Assembly in preparation for passage into law. Below is a highlight of how the Bill is structured and other information that will be of significant interest to our readers.
In the coming days, we will be dishing out information from the Bill to our esteemed readers and the insuring public. Please stay tuned.
The Bill is titled Nigeria Insurance Industry Reform Bill, 2024: A Bill For An Act to Repeal the Insurance Act, Cap. I17, Laws of the Federation of Nigeria, 2004; the Marine Insurance Act, Cap. M3 Laws of the Federation of Nigeria, 2004; the Motor Vehicles (Third Party Insurance) Act, Cap.M22, Laws of the Federation of Nigeria, 2004; the National Insurance Corporation of Nigeria Act, Cap. N54, Laws of the Federation of Nigeria, 2004; the Nigeria Reinsurance Corporation Act, Cap. N131, Laws of the Federation of Nigeria, 2004; to Provide for a Comprehensive Legal and Regulatory Framework for Insurance Business in Nigeria; and for Related Matters.
The Bill which is structured into 16 parts with First and Second Schedules is made up of 105 pages with a total of 40,916 words.
The Bill which is sponsored by Senator Mukhail Adetokunbo Abiru (Lagos East) is co-sponsored by 40 other Senators including Sen. Usman Lawal Adamu, Sen. Bamidele Michael Opeyemi, Sen. Daniel Justus Olugbenga Sen. Aminu Wazir Tambuwal, Sen. Adeola Solomon Sen. Adebule Idiat Oluranti, Sen. Sanni Bello Abubakar Sen. Mohammed Goje, Sen. Muhammad A. Aliero Sen. Mohammed Tahir Mongono, Late Sen. Patrick Ifeanyi Ubah Sen. Osita Izunaso, and Sen. Manu Haruna Sen. Khalid Ibrahim Mustapha
Others co-sponsors of the Bill are Sen. Khabeeb Mustapha, Sen. Hussaini Babangida Uba, Sen. Nwebonyi Onyeka Peter, Sen. Ekpenyong Asuquo, Sen. Dandutse Muntari Mohammed, Sen. Titus Tartenger Zam, Sen. Nasiru Sani Zangon Daura, Sen. Adaramodu Adeyemi, Sen. Kaka Shehu Lawan, Sen. Jarigbe A. Jarigbe, Sen. Mpigi Barinada Sen. Ibrahim Lamido, Sen. Isah Jibrin, Sen. Ibrahim M. Bomai, Sen. Umar Sadiq, Sen. Orji Uzor Kalu, Sen. Jimoh Folorunsho Ibrahim, Sen. Kelvin Chukwu, Sen. Henry Seriake Dickson, Sen. Muhammed Sanni Musa, Sen. David S. U Jimkuta, Sen. Yahaya Andullahi, Sen. Binos Yaroe, Sen. Tony Nwoye, Sen. Natasha Akkpoti Uduaghan, and Sen. Abulaziz Yari.
Part I of the Bill contains Objective and Application; Part II, Classification; Part III, Licensing And Operation Of Insurer; Part IV, Capital Requirements; Part V, Operation Of Insurance Company; Part VI, Insurance Intermediaries; Part VII, Actuary; Part VIII, Premiums And Commissions; Part IX, Insurance Contracts: Disclosure, Conditions And Warranties.
It is discovered that the Bill has no Part X. It jumps from Part X to Part XI.
Part XI of the Bill talks about Motor Vehicles (Third Party) Insurance; Part XII, Ecowas Brown Card Scheme; Part XIII, Acquisitions, Amalgamations And Transfers; Part XIV, Winding Up; Part XV, Marine Insurance and Part XVI, Miscellaneous.
The First and Second Schedules taken from Section 148 sub-sections A and B contain the Form Of Policy and Rules For the Construction Of Policy.
The Bill, according to the Explanatory Memorandum, seeks to make a comprehensive legal framework for the regulation and supervision of all manner of insurance businesses in Nigeria.
It also seeks to repeal the — (a) Insurance Act, Cap. 117, Laws of the Federation of Nigeria, 2004; (b) Marine Insurance Act, Cap. M2, Laws of the Federation of Nigeria, 2004; (c) Motor Vehicles (Third Party Insurance) Act, Cap. M22, Laws of the Federation of Nigeria, 2004; (d) National Insurance Corporation of Nigeria Act, Cap. N54, Laws of the Federation of Nigeria, 2004; and (e) Nigeria Reinsurance Corporation Act, Cap. N131, Laws of the Federation of Nigeria, 2004 and (f) Section 4 (5); Section 8 (1) and Section 9 of the Pension Reform Act, 2014.
The Bill contains 232 provisions – 1 (Objective), 2 (Application), 3 (Classification of insurance business), 4 (Restriction on the use of the word “Insurance” or “Underwriter”), 5 (Conditions for licensing), 6 (Specialization), 7 (Rejection of application), 8 (Cancellation of licence), 9 (Power to vary the conditions of a license), 10 (Operating an unlicensed insurance business), 11 (Holding company), 12 (Appointment and change of principal officers), 13 (Disqualification for appointment as principal officer), 14 (Principal place of business), 15 (Minimum capital requirements), 16 (Minimum capital to be deposited with the Central Bank of Nigeria), 17 (Delivery of policy document), 18 (Approval of new insurance products), 19 (Records to be kept by an insurer), 20 (Records to be kept by a reinsurer), 21 (Provisions for unexpired risks and claims (Insurance reserves), 22 (Reserves for life assurance business), 23 (General reserve fund for reinsurers), 24 (Capital adequacy), 25 (Risk-based approach), 26 (Determination of required capital), 27 (Investment of policy holders funds), 28 (Penalty in relation to investments), 29 (Statement of accounts, etc), 30 (Quarterly returns), 31 (Life assurance returns) 32 (Non-life insurance returns), 33 (Audit), 34 (Termination of auditor’s appointment by insurer), 35 (Restriction on dividend), 36 (Exemption of retirement life annuity from taxation), 37 (Insurance agents), 38 (Duties of insurance agents in relation to remittance of premiums), 39 (Licensing of insurance brokers), 40 (Reinsurance broking).
Provision 41 (Renewal of licence of an insurance or reinsurance broker), 42 (Cancellation of licence of an insurance or reinsurance broker), 43 (Requirement as to indemnity cover, staff, etc), 44 (Records of transactions and other documents to be kept by insurance brokers), 45 (Suspension of licence), 46 (Audit of insurance broker), 47 (Insurance broker to establish clients’ account), 48 (Licencing of loss adjusters), 49 (Renewal of licence of loss adjusters, 50 (Cancellation of licence of a loss adjuster), 51 (Records to be kept by loss adjuster), 52 (Attendance to claims by foreign loss adjusters), 53 (Definition of an actuary), 54(Powers of the Commission to appoint actuary), 55 (Powers of actuary), 56 (Obligations of actuary), 57 (Annual investigations), 58 (Statutory actuary), 59 (Actuarial investigation and report), 60 (Payment of insurance premium), 61 (Payment of premium through a broker), 62 (Payment of insurance commission), 63 (Administration of certain discounts and rebates), 64 (Proposal form), 65 (Breach of material and relevant terms), 66 (Insurable interest), 67 (Policy document to specify insured or event), 68 (Special requirements relating to group life assurance), 69 (Missing employee), 70 (Limitation on amount receivable).
Continues tomorrow, August 2, 2024.
