By Bisi Bamishe
The insurance industry may have suffered another setback on trust issues from the insuring public following the recent comatose of African Alliance lnsurance Plc.
The risk bearing industry is yet to recover from recent death of notable insurance companies like Niger Insurance and Standard Alliance Insurance Plc due to inability to settle claims.
The inability of African Alliance to pay claims arising from insolvency and consequently, leading to its present financial comatose has become worrisome.
Pensioners are owed monthly pensions with many insured owed claims while those with savings backed policies are unable to access their monies.
A visit to African Alliance headquarter in Lagos last week showed a lockdown office, with none of the staff available to attend to customers of the company.
However, in an interview with the company’s Corporate Communicstion officer Kelechi said, “We know what our customers are going through. In a matter of time, everything will be sorted out. I am giving the public the opportunity of doubt”.
Giving the public confidence that the company’s clients would all be paid, he added, “We sympathise with our customers, most especially the pensioners because of the circumstances we have found ourselves. Everyone will get their money Be rest assured”.
“NAICOM gave us ultimatum to pay our clients. We are trying to do accordingly We have paid almost all the people. All hands are on deck to pay everyone. We have started paying in batches. We paid some in June, July and on or before end of August, we will finish paying everybody.Hopefully, all would be paid. We have a plan to settle all claims. Our road map is realistic, not spiritual.
Last month, the regulatory body, National Insurance Commission (NAICOM) issuied an ultimatum ordering the company to settle outstanding claims and submit turnaround plans.
NAICOM in a statement on July 5, 2024 titled: “NAICOM Gives Matching Orders to the Board of African Alliance Insurance Plc” stated that, “Following increased complaints by annuitants and insurance claimants against African Alliance Insurance Plc in respect of the company’s delay and/or inability to fulfill its obligations, the National Insurance Commission has given marching orders to the company to resolve and ensure settlement of outstanding claims.
The Commission had earlier summoned the Board of African Alliance Insurance Plc to its headquarters in Abuja and ordered the company to settle outstanding payments due to annuitants and claimants. In addition, the Board of Directors of the company was directed to immediately submit a turnaround plan for addressing the challenges currently faced by the company which necessitated putting the company under the Commission’s Regulatory Order.
