The Nigerian Insurers Association (NIA) has assured the public that the Industry’s Reform Bill would improve legislation protection by creating a compensation fund for victims of liquidated underwriting firms in the country.

The association’s Chairman, Kunle Ahmed, gave the assurance during a quarterly briefing in Lagos at the weekend, saying the bill is a major piece aiming to overhaul the regulatory framework of the Nigerian insurance sector.

According to him, the bill reflects increased capital requirements, which will lead to a stronger and more virile insurance company that can develop new products for the public and address consumers’ pain.

Ahmed explained that in the bill, the fund is included for uninsured road accident victims, adding that the section of the bill is expected to enhance trust and confidence in the insurance industry.

He said the NIA has made a representation to the government regarding the taxation of insurance premiums, noting that the insurance premium belongs to shareholders and should not be taxed.

“Changes to any tax bill could impact various sectors of the economy, including insurance. We have made a representation to the government regarding the taxation of insurance premiums, emphasising that some premium belongs to shareholders, especially on the life insurance side and this concern is being taken seriously,” he said.

On the enforcement of third-party motor insurance in Nigeria, Ahmed commended the Nigeria Police Force and the National Insurance Commission (NAICOM) for Insurance for their commitment to protecting Nigerians on the road.

“For us at NIA, the enforcement of the third-party policy is largely to the benefit of policyholders. Policyholders are entitled to compensation for their liabilities in terms of injury or death to third parties, which is unlimited,” he said.

Also, the Director General of NIA, Bola Odukale, stressed the importance of claims payment and said the hallmark of any licensed insurance company was the timely payment of claims.