The House of Representatives, on Wednesday, charged its Committee on Insurance and Actuarial Matters to conduct a forensic probe into the over N30bn unsettled claims in the group life insurances of the Nigeria Police Force, Head of Service and the Ministry of Defence.

The House noted that the unsettled claims were a result of non-compliance with Section 57 of the Insurance Act, 2023, and Section 4, Subsection 5 of the Pension Reform Act, 2014, among others.

The resolution of the House was sequel to the adoption of a motion titled, “Breaches and Other Infractions of some Federal Government Institutions on Insurance and Actuarial Matters Using Forensic Auditors.”

The motion was moved by the member representing Gummi/Bukkuyum Federal Constituency of Zamfara State, Mr Sulaiman Gumi.

Speaking in favour of the motion, Gumi said, “The House is concerned that lack of transparency and accountability in insurance practice in Nigeria today has resulted in over N30bn unsettled claims in the group life insurances of the Nigeria Police Force, Head of Service (for Federal Civil Servants), and Ministry of Defence (for the Nigerian Armed Forces).

“We are aware that over $1bn that should have been retained in Nigeria, if all insurance practitioners are given the option of the right of first refusal, is being taken abroad, which affects the nation’s economy, thereby always weakening our insurance sector and depleting our foreign reserves.

“These breaches have given rise to excessive cession and retrocession of businesses in breach of the Local Content Act to the extent that 90 per cent of the risks of some Federal Government organisations are placed outside the country.”

He noted that the development “has led to millions of families of the deceased Federal Government’s personnel that are the beneficiaries suffering because they were not paid the entitlement of their breadwinners.”

“When paid, in some cases, unallowed deductions are made, thereby shortchanging them.”

According to him, letters to the Federal Government’s agencies and ministries by the Committee on Insurance and Actuarial Matters “are being treated with ignominy.”

This, he stressed, would soon become the rule rather than the exception and it “will negatively impact the overall oversight functions of the House of Representatives, if not nipped in the bud.”

The motion was unanimously supported by lawmakers presented at Wednesday’s plenary and was thereafter referred to the Committee on Insurance and Actuarial Matters to report back to the House within four weeks for further legislative action. (The PUNCH)

Update news