NAICOM can’t increase insurance firms’ paid up share capital without NASS, court rules

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Federal Fire Service, NAICOM to enforce compulsory public building insurance

.Federal Fire Service, NAICOM to enforce compulsory public building insurance

By Innocent Anaba

A FEDERAL High Court sitting in Lagos, has held that the National Insurance Commission, NAICOM,  cannot increase the statutory minimum solvency capital policy for insurance companies without the National Assembly amending the Insurance Act and Regulation 2003.

Trial judge, Justice Chukwujeku Aneke, made the order in a judgment in the suit filed by rights activist and lawyer, Tope Alabi.

The court also directed NAICOM to reverse itself on the increase in the statutory minimum solvency capital policy for Insurance companies.

According to the judge, the directives/guidelines/circular on capital base increase offends Section 4 of the 1999 Constitution and Section 9 of the Insurance Act and Regulation 2003.

Alabi had sued NAICOM and Attorney-General of the Federation, AGF, in the suit.

The suit followed NAICOM’s announcement in 2018, that it planned to release the Guidelines for the implementation of the minimum solvency capital policy in…



Source: Vanguard Newspaper