Annuity Retirees in Limbo after NAICOM closes Two Insurance Companies
The National Pension Commission (PenCom) has engaged the National Insurance Commission (NAICOM) on how to ensure payments to retirees under annuity in the liquidated Niger Insurance Plc and Standard Alliance Plc.
Recall that NAICOM disclosed last year that it revoked the certificates of registration of Standard Alliance Insurance Plc, RIC – 091 and Niger Insurance Plc, RIC – 029, with effect from the 21st day of June 2022. Although no official reason was given for the revocation of the licences, NAICOM by law can revoke the certificate of registration of an insurer, if the insurer is insolvent, about to suspend payment of claims to any extent, or unable to meet its obligations.
PenCom had initiated the engagements because of retirees on annuity in the liquidated Niger Insurance Plc and Standard Alliance Plc, who have not been receiving monthly pension benefits since the insurance companies operational licences were revoked by NAICOM.
NAICOM has appointed Receiver/Liquidator for Niger Insurance and Standard Alliance Insurance and advised all stakeholders to forward their enquiries to the Receiver/Liquidator for each company for their necessary action, but shareholders of both Niger Insurance and Standard Alliance, have gone to court to challenge NAICOM’s decision to revoke their operational licences.
PensionNigeria notes that for retiree on life annuity, where the licence of the Insurance company is revoked by NAICOM, the Retiree Life Annuity (RLA) Portfolio with the liquidated companies will be transferred to other insurance companies. The Revised Regulation on Retiree Life Annuity mandates NAICOM to notify National Pension Commission (PenCom) of such revocations and transfers. NAICOM and PenCom as regulators, need to guarantee all stakeholders especially retirees on life annuity, that the revocation of licence of insurance companies will not negatively affect their monthly pension.
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