After a Federal High Court in Lagos ordered the National Insurance Commission to stop the implementation of its Tier-Based Minimum Solvency Capital policy, NAICOM says that it has yet to be served with any court order restraining it from implementing its regulation.
Justice Muslim Hassan on Thursday gave the order in a class action brought by some shareholders of insurance companies, restraining NAICOM from enforcing the TBMSC policy, pending the expiration of the 30-day pre-action notice dated September 4, 2018.
Counsel to the applicant, Bert Igwilo, told the court that he served the commission a pre-action notice on September 6.
He stated that the applicants had before the court an originating summons ex-parte restraining NAICOM from enforcing the proposed policy pending the expiration of the pre-action notice.
But the Commissioner for Insurance, Alhaji Mohammed Kari, said that the commission did not receive any court order, and would continue with the recapitalisation of the underwriting firms.
He said, “There is nowhere in the world where a court order stops regulations. Regulation is regulation.”
As a regulator, he said NAICOM would continue to protect the shareholders, the consumers, the economy and every stakeholder as well as the interest of the operators.
On July 25, NAICOM announced a raise in the minimum capital base for composite insurance companies (life and non-life underwriters) seeking to get licences to underwrite all risks in the country from N5bn to N15bn under its tier-based minimum solvency capital structure.
The requirements of the policy and urgent move to implement the TBMSC by the regulator had however not been well received, especially by companies currently not rated as Tier 1.
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