No Sanctions for 14 Insurance Firms- NAICOM
The National Insurance Commission(NAICOM) has refuted reports in the Media that it has sanctioned 14 insurance firms for failing to submit their 2017 financial accounts.
In a statement signed and circulated by the Head of Corporate Affairs of the Commission, Alhaji Salami Rasaaq Obomeile and made available to Economic Confidential in Abuja, the commission noted that it was “shocked at this display of ignorance and total lack of knowledge by these media” (not Economic Confidential Magazine/Online).
The statement from NAICOM further emphasized that it has not sanctioned any insurance company for failure to submit it’s 2017 accounts as claimed in the said news reports.
It also stated that “Please note that the deadline for submission of financial reports by insurance companies to the Commission is June 30th”.
The commission also explained that no insurance company could be said to be at default when the year is still in April, while urging the Media to seek clarifications on issues they are ignorant of before publishing in order not to mislead the public.
Economic Confidential recalls that the National Insurance Commission (NAICOM), has in the past warned it would wield the big stick on insurance underwriters that fail or delay the statutory duty of timely rendition of the financial statements.
NAICOM’s statute demands that insurance companies are to submit their audited financial statements by June 30th of every financial year.
NAICOM regulation requires insurance firms to submit their financial statements on or before June 30 every year, failing which will attract severe sanction from the Commission.
The Commission’s spokesman has continued to maintained that the decision to impose sanctions on such companies became necessary, as their default deprives the regulator, policyholders, insurance intermediaries, analysts and other stakeholders of relevant information about their performance and financial conditions.
Statutorily, financial statement and annual report of limited liability companies contain very crucial information about their operations, earnings, performance, corporate actions and future direction of the organisation. Investors and analysts often see late or non-submission of such document as an indication of trouble for companies, especially in the face of the nation’s economic problems.