Finance
Expert hints on how insurance companies are handling #EndSARS related claims payments
By David Oladele
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The Managing Director and Chief Executive Officer (CEO) of NICON Insurance Limited, Muhammadu Bagudu Hussaini, has spoken about claims payment to the insured owners of the vandalized properties during the recent #EndSARS protests turned violence.
Nigerian youths had recently taken to the streets to demand that the country’s leaders disband the Special Anti-Robbery Squad (SARS) and reform the nation’s police force.
Hussaini disclosed that he has no doubt about the capacity of the insurance companies to meet their obligations on claims that might have arisen from the violence across the country
The CEO expressed optimism in an interview with Daily Trust Newspaper, saying the government has the machinery to pay the insurance companies without recourse to treasury.
According to him, “There will be a large volume of claims which the insurance industry would have to pay. I have no doubt about the capacity of the insurance industry to meet its obligations on claims that may arise from the destruction across the country.
“However, two issues would arise because the context of the claims are huge and would come in at the same time. There will be no spread, thus this will impact the finances of the underwriters and may destabilize their finances.
“What happened was as a result of breakdown of law and order. Section 14 (2b) of the Nigerian Constitution vests the duty of guaranteeing security and providing for the welfare of the citizens in the hands of government – the executive precisely. I will look at the damages from the protest as a failure of the government to provide security and welfare for the citizens.
“The section says the security and welfare of the people shall be the primary purpose of government. Thus, insurance companies have a subrogation right – the right to recover from the government their funds after they pay the claims arising from the destruction.
“Therefore, I advise the insurance companies to pay their claims and seek refund on the basis of Section 14 (2b) of the Constitution of the Federal Republic of Nigeria.”
