Standard Alliance Insurance Plc. has demanded N10 billion from Nigeria Insurance Association (NIA) as damages for loss of reputation that resulted from its purported expulsion by the association.
This is contained in a letter sent to NIA by the solicitor of the insurer, Ebun -Olu Adegboruwa (SAN), dated July 5 , on Friday in Lagos.
The solicitor also demanded an immediate withdrawal of the letter of suspension, termination and expulsion given to the underwriter within seven days from the day of receipt of the letter.
It stated that the same should be published with an unconditional apology in all national dailies wherein it was advertised with similar or greater prominence.
NIA had on June 23, announced expulsion of Industrial and General Insurance Co. Ltd (IGI) Niger Insurance and Standard Alliance Insurance Plc as its members with effect from Feb. 22.
NIA said expulsion of the insurance companies was for failing to meet up their obligations to policy holders and thus negating the basic principles of insurance.
Standard Alliance Solicitor alleged that the Chairman of the NIA’ s Governing Council, Mr Ganiyu Musa, did not recuse from all deliberation and eventual decision of the council in approving the purported expulsion of the insurer, against which he had a pending grievance.
It explained that the process through which the insurance firm was sanctioned was manifestly tainted with fundamental infractions and circumvention of its right to fair hearing as guaranteed by the 1999 Constitution.
“The reason proffered for terminating the insurer’s membership is glaringly false, considering that the company, in 2018, made a cash premium of N3,757, 303,000 and paid claims of N2,707,875, 000, inclusive of individual life policy claims.
“In 2019, the insurer made a cash premium receipt of N2,427,120,000 and paid claims of N1,907,834,000, inclusive of individual life policy claims.
“In 2020, due to the effect of the coronavirus pandemic lockdown, the underwriter made a cash premium of N967,753,000 and had to resort to other reserve funds to enable it pay claims of N 1,148 ,327,340, inclusive of individual life policy claims,” it said.
According to the solicitor, the firm also settled all its obligations to NIA for which the receipt was duly issued by the association on Dec. 22, 2020 .
The solicitor said : “If at the expiration of the seven days from the date of receipt of this letter, our request on behalf of our client is not met.
“We shall have no further recourse to you but proceed to execute our clients’ further instructions to explore all redress against the association, including taking steps to nullify the purported expulsion and to seek damages .