{"id":43372,"date":"2024-08-14T11:05:16","date_gmt":"2024-08-14T11:05:16","guid":{"rendered":"https:\/\/abujacityjournal.com\/livenews\/?p=43372"},"modified":"2024-08-14T11:05:16","modified_gmt":"2024-08-14T11:05:16","slug":"nass-suggest-n25-million-fine-for-unlicensed-insurance-operators","status":"publish","type":"post","link":"https:\/\/abujacityjournal.com\/livenews\/2024\/08\/14\/nass-suggest-n25-million-fine-for-unlicensed-insurance-operators\/","title":{"rendered":"NASS Suggest N25 million Fine For Unlicensed Insurance Operators"},"content":{"rendered":"

The National Assembly of Nigeria (NASS) has proposed a fine of N25 million for individuals found operating unlicensed insurance businesses in the country.\u00a0<\/span><\/p>\n

This provision is part of the proposed Nigeria Insurance Industry Reform Bill, 2024, which seeks to overhaul the existing insurance regulatory framework in Nigeria.\u00a0<\/span><\/p>\n

According to the proposed bill, any individual who engages in insurance business without the proper licensing will be liable to a fine of N25 million or face a prison term of two years, or both.\u00a0<\/span><\/p>\n

This proposed amount is a 100-fold increase from the N250,000 fine for a similar offence in the Nigeria Insurance Act 2003<\/p>\n

In the vain any<\/span> company or firm found guilty of the same offense, the penalty doubles, with principal officers of the organization facing fines of N50 million each, alongside the possibility of a two-year prison sentence.\u00a0<\/span><\/p>\n

\u201c<\/em>an individual, to a fine of N25,000,000.00 or to imprisonment for a term of 2 years or both<\/em>\u201d<\/em><\/p>\n

\u00a0<\/em>\u201c<\/em>a company, firm or other combination of persons, each Principal Officer of the company, firm or other combination of persons responsible to a fine of N50,000,000.00 or to imprisonment for a term of 2 years; or to both.\u201d<\/em>\u00a0<\/span><\/p>\n

Furthermore the bill stated that any entity applying for a license must be incorporated as a limited liability company under the Companies and Allied Matters Act No. 3 of 2020, or established pursuant to any other law or enactment in Nigeria. This ensures that only legally recognized entities can operate in the insurance space.\u00a0<\/span><\/p>\n

Once licensed, insurers must conduct their business according to sound insurance principles. This includes prudent risk management, financial stability, and adherence to industry best practices. Failure to comply with these<\/span> principles can result in the revocation of the insurer\u2019s license.\u00a0<\/span><\/p>\n

The bill also outlines several circumstances under which the Commission may cancel an insurer\u2019s license. These include insolvency, failure to maintain required capital, cessation of business activities, and involvement in fraudulent practices.<\/p>\n

If a license is cancelled, the insurer is prohibited from accepting new business, and the Commission may act as a receiver to manage the company\u2019s affairs.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

The National Assembly of Nigeria (NASS) has proposed a fine of N25 million for individuals found operating unlicensed insurance businesses in the country.\u00a0 This provision is part of the proposed Nigeria Insurance Industry Reform Bill, 2024, which seeks to overhaul the existing insurance regulatory framework in Nigeria.\u00a0 According to the proposed bill, any individual who […]<\/p>\n","protected":false},"author":27,"featured_media":19442,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-43372","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"aioseo_notices":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/43372","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/users\/27"}],"replies":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/comments?post=43372"}],"version-history":[{"count":1,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/43372\/revisions"}],"predecessor-version":[{"id":43373,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/43372\/revisions\/43373"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media\/19442"}],"wp:attachment":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media?parent=43372"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/categories?post=43372"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/tags?post=43372"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}