NAICOM directs on timeline for delivery of policy documents, claims notification acknowledgment
Insurance regulator, the National Insurance Commission (NAICOM) has directed insurance institutions in the country on timelines for delivery of policy documents to the insured, as well as acknowledgement of all reported claims.
According to the Commission, insurance institutions shall document evidence of the acceptance of a policy contract by the insured as enshrined in the 2003 insurance Act, while for claims, insurance institutions must within 48 hours of claims notifications by the insured give acknowledge to the effect.
This is contained in a circular signed by Pius Agbola, director, Policy and Regulation, National Insurance Commission( NAICOM) onbehalf of the commissioner for Insurance with the them ‘ ‘Circular to In
surance Institutions on fair Trade Practice And Fair Treatment of Customers’.
The circular reads: As part of the roles of the Commission to establish standards for the conduct of insurance business in Nigeria and in furtherance of the government’s drive towards operational transparency and enhance ease of doing business in Nigeria, it has become imperative to issue this circular for compliance by all insurance institutions in Nigeria.
“Insurance institutions are reminded that the timeline required in delivery of insurance policy document which is an evidence of insurance contract shall be in accordance with provisions of insurance Act 2003. In line with the above, insurance institutions are required to adequately document evidence of delivery of insurance policy document the insured.”
The circular also stated to that insurance Institutions shall obtain an appended signature of the insured or his representative evidencing his or her concurrence with the content of the policy document.
On the issue of claims, the Commission also said in line with the express provision of the insurance Act 2003 in connection with the time to settle claims, insurance institutions are hereby reminded of their responsibilities and obligations to settle claims promptly.
“Further to the above, institutions are required to acknowledge all reported claims not later than 48 hours from the date of notification. “
Besides, Insurance Institutions website are required to be regularly updated (But not later than three months with the following minimum information to the insuring public - The average timeline to settle claims for various classes of insurance; business location and contact number of all its branches; and the complaint procedure, the Commission said.