NAICOM revokes operational licenses of Niger Insurance, Standard Alliance Insurance

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The National Insurance Commission (NAICOM) has announced the cancellation of the Certificates of Registration of Niger Insurance Plc and Standard Alliance Insurance Plc.

The action by the apex insurance regulator might not be unconnected with the financial and liquidity crisis that had hit both insurance firms.

This  disclosure is contained in a statement titled, ‘Notice of cancellation of the Certificates of Registration of Niger Insurance Plc and Standard Alliance Insurance Plc,’ issued by the Head, Corporate Communications and Market Development of NAICOM, Rasaaq Salami.

Salami in the statement said that the Commission has appointed Sanya Ogunkuade and Kehinde Aina, as the Receiver/Liquidator for Niger Insurance and Standard Alliance Insurance Plc respectively.

The statement from NAICOM reads, “This is to notify all insurance stakeholders and members of the public that the National Insurance Commission has cancelled the certificates of registration of Standard Alliance Insurance Plc, RIC – 091 and Niger Insurance Plc, RIC – 029 with effect from the 21st day of June 2022.

“Consequently, the commission has appointed Sanya, Ogunkuade Esq of Plot 217, Upper Grace Plaza, 3rd Floor (Left Wing), Shetima Munguno Crescent, Behind Julius Berger Equipment Yard, Utako, Abuja as the Receiver/Liquidator for Niger Insurance Plc and, Kehinde Aina Esq of Aina Blankson LP, 5/7, Ademola Street, SW Ikoyi, Lagos as the receiver/liquidator for Standard Alliance Insurance Plc.

“All stakeholders are advised to forward their enquiries to the respective Receiver/Liquidator for each company for their necessary action.

“The Commission assures all stakeholders of the safety and protection of their interests.”

Recall that earlier in March 2022, NAICOM issued 30 days’ notice to both Niger Insurance Plc and Standard Alliance Insurance Plc, shut down over their inability to settle pending claims in a move that will leave fate of thousands of life policy holders hanging.

Both companies have struggled to pay policyholders’ claims, staff salaries and exited staff gratuities with many of the affected clients facing frustrations, particularly with life policies.

They have written petitions to NAICOM, NIA or went to court, but unfortunately, all efforts to rescue the companies through new investors proved abortive.

The Nigeria Insurance Association (NIA), the umbrella body of insurance firms in the country, had suspended the two firms from its membership in June last year on the back of their defaults on obligations to policyholders especially on claims payment amongst others.