LAGOS — NINETY-three insurance companies in Nigeria have sued the National Insurance Commission (NAICOM) over its 2003 insurance regulations. They are claiming that the regulations was neither signed by the Minister of Finance, Mrs Ngozi Okonjo-Iweala, or gazetted and thus, does not have the force of law. The insurance companies are arguing that the regulations is in conflict with Insurance Act of 2003.
The companies, acting under the umbrella of the trade group, Nigerian Insurers Association (NIA), are praying the court to void the said regulations and cause the commission to refund over N182 million collected by it on the basis of the regulations. Joined in the suit filed June 23, 2004 are Ministers of Finance and the Attorney-General of the Federation.
In an originating summons filed at the Federal High Court in Abuja, the insurers want a declaration by the court that Insurance Regulations 2003 has not been published as required by law and, therefore, could not serve as the measure of compliance for recapitalisation by insurers.
At issue in the eight-point demand is the certification, re-registration and recapitalisation fees which the plaintiffs claim the commission imposed on them prior to the recapitalisation deadline. Precisely, insurers are contesting the validity of the regulations upon which NAICOM imposed the fees. They are also demanding a refund of an amount totaling N182 million from NAICOM at 21per cent interest per annum “with effect from the date of collection of the fee from each plaintiff until the date of refund.”
Also, the plaintiffs want an order of perpetual injunction restraining NAICOM and its agents from demanding levies or fees from them unless that contained in the Insurance Act 2003 or other legislation of the National Assembly. Similarly, insurers are also asking the court to determine whether NAICOM “which is a creation of statute can exercise any power, unless authorised by its enabling Act or any other enactment of the National Assembly;” whether the commission can within the confines of the existing law “impose a ‘certification’ or ‘registration’ or ‘recapitalisation’ fees on the plaintiffs and whether the said exercise is ultra vires under the law.”
Insurance companies are also seeking a determination of the powers of NAICOM to base the publication of the list of recapitalised insurers on the payment of the certification, recapitalisation and re-registration fees.
In the affidavit sworn to by the Director-General of the insurers’ trade group, Mr Ezekiel Chiejina, the plaintiffs provided exhibits to show that payments of the said fees were made under duress since the commission had threatened to delist any insurer who failed to pay the fees it demanded.
