Nigeria Insurers Association (NIA) on Wednesday disclosed that risk underwriting companies in the country paid over N5.4bn in claims settlement arising from #EndSARS losses.
The association’s Director-General, Yetunde Ilori, made this disclosure at the Surplus Distribution Event held by Noor Takaful Limited and commended the insurance company for its contributions to the industry.
The DG said: “There is also a privacy policy regarding insurance. During the #EndSARS period, we have paid over N5.4bn in settlement of claims. As an umbrella body, we would summarize what we are doing in terms of insurance claims payment.
“The principle of insurance is so many people contributing money together to settle the unfortunate ones.
“Takaful is a model of that particular principle. Other insurance companies also provide non-claim discounts to those who have not collected their claims.”
Ilori also congratulated on its consistent impressive performance and charged the Board and the management on the need to recapitalize the underwriting entity to position it on the path of sustainable growth
She said: “We looked at your growth from the gross contribution of N243m and now from our records in 2020, you have crossed over to have generated a contribution of about N1.2bn and I think this is a great achievement.”
In his remarks at the event, a former CBN governor, Muhammadu Sanusi, expressed delight at the growth of the company, recalling his past roles in the evolution of Islamic finance in the country.
He expatiated: “Takaful is part of the growth trajectory of Islamic finance that was influenced by the introduction of Islamic banks and Islamic capital markets entities.
“Its introduction is a testimony to the responsiveness of NAICOM, the insurance regulator of Nigeria. “Banking and insurance services are a measure of the development of a country’s financial services.
“Based on this need, mutuality and collectiveness reflected by the practice and teachings of Islam, Takaful Insurance was recognised by some economists, financial experts as alternatives to financial trade.”
The Chairman of Noor Takaful, Muhtar Bakare, disclosed that company recorded positive returns for the third consecutive year and also distributing surplus.
Bakare said that in the 2019 financial year in review, the company would distribute N36 million to qualifying participants as approved by the industry regulator, the National Insurance Commission (NAICOM).
