…Demands N10bn compensation
Managers of Standard Alliance Insurance Plc said that they have taken exception to issues and purported reasons which culminated in the suspension of the company as member of the umbrella body of registered insurance companies in the country; the Nigerian Insurers Association (NIA) saying that Standard Alliance Insurance company has remained committed to its contractual obligations with particular emphasis of payment of claims.
Standard Alliance claimed that there appear to be some pecuniary interests other than allegations of non claims payment which induced its suspension as a member of NIA.
It was against this backdrop that Standard Alliance is threatening legal actions against the NIA except the association reinstates its membership.
Standard Alliance Insurance Plc had through the chambers of Ebun-Olu Adegboruwa demanded for the immediate withdrawal of the letter of suspension and termination. The company also demanded a N10 billion compensation as damages to it.
“Take notice that if at the expiration of the seven (7) clear days from the date of your receipt of this letter, our request on behalf of our Client is not met, we shall have no further recourse to you but will proceed to execute our Client’s further instructions to explore all lawful means of redress against the Association, including take steps to nullify the purported expulsion and to seek damages”, the notice which was dated July 5, 2021 and signed by Ebun-Olu Adegboruwa read in parts.
Recalling events which led to the purported termination of membership of NIA, Standard Alliance observed series of letters from the association some dating back to 2018 wherein NIA drew attention to nonpayment of membership dues as well as payment of outstanding claims. Standard Alliance said that it payment the dues demanded by NIA even while the company was still under suspension.
“In 2018, our Client made a cash premium receipt of N3,757,303,000 and it paid claims of N2,707,875,000 inclusive of individual life policy claims. In 2019, our Client made a cash premium receipt of N2,427,120,000 and it paid claims of N1,907.834,000 inclusive of individual life policy claims; and in 2020, due to the effect of the Corona Virus Pandemic look-down, our Client made a cash premium receipt of N967,753,000 and it even had to resort to other reserve funds to enable it pay claims of N1,148,327,340 of individual life policy claims”, the legal team of the insurance company revealed.
Standard Alliance Insurance Plc regretted that despite replying NIA’s letter of 18th February, 2021 via a letter of 26th April, 2021 giving the Association an update of the company’s claims settlement portfolio, NIA proceeded to rely on Section 4 (5) of its Constitution in the letter of termination dated 18th February, 2021, to give 60 days to settle all outstanding claims failing which the Association will proceed to publish the expulsion in the national newspapers, which threat was consummated on Wednesday the 23rd day of June, 2021, when the Association published the termination of membership of three insurance companies which included Standard Alliance Insurance Plc.
Standard Alliance described as worrisome, the fact that certain money which was owed it by a reinsurance company was erroneously debited against it as part of outstanding claims.
Standard Alliance Insurance alleged bias in the treatment and determination of is termination of NIA membership saying that the current chairman mof the association Mr. Ganiyu Musa using the advantage of his position to injure its business interest considering that the company have an outstanding case with Mr Musa’s company; Cornerstone Insurance Plc.
“To all intents and purposes, Mr. Ganiyu Musa was not qualified to sit in judgment against our Client, since he already had vested/personal interest against our Client by the involvement of his company (Cornerstone Insurance) in the subsisting dispute pending before the EFCC and the Federal High Court, leading to conflict of interest, palpable partiality and real likelihood of bias against our Client. This has polluted and indeed vitiated the entire proceedings leading to the purported expulsion of our Client, being unconstitutional null and void and liable to be set aside” Council to Standard Alliance observed.
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