INSURANCE ACT

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LAWS OF THE FEDERATION OF NIGERIA  

INSURANCE ACT

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EXPLANATORY MEMORANDUM

This Act [which repeals the Insurance Act, Capp I17, LFN, 2004; section 4 of the National Insurance Corporation Act, 1969; and section 7 of the Nigerian Reinsurance Corporation Act, 1977] was enacted  to provide for a New Insurance Act and framework in Nigeria.

ARRANGEMENT OF SECTIONS

PART I – Application of this Act

1. Application of this Act.
2. Classification of insurance business.

PART II – Registration

3. Persons who may commence or carryon insurance business in Nigeria, etc.
4. Insurance to be registered.
5. Application for registration.
6. Registration as insurer.
7. Rejection of application or appeal.
8. Cancellation of registration and appeal.

PART III – Share Capital

9. Requirements as to minimum paid-up share capital.
10. Share capital to be deposited with the Central Bank.

PART IV – Modes of Operation of Insurers

11. Requirements as to principal office of insurer.
12. Disqualification for appointment as director, etc.
13. Appointment of chief executive subject to the approval of the Commission.
14. Change of chief executive to be notified to Commission.
15. Time for delivering policy documents, etc.
16. Approval for new products
17. Records to be kept by insurer
18. Records to be kept by reinsurer
19. Separation of accounts and reserves funds
20. Provisions for unexpected risks and claims
21. Contingency reserves
22. Reserve for life insurance
23. Reserve of reinsurers
24. Solvency margin, etc
25. Investment.
26. Statement of accounts, etc.
27. Life insurance accounts.
28. Audits.
29. Actuarial valuation.

PART V – Amalgamation and Transfer

30. Procedure for amalgamation.
31. Documents to be deposited with the Commission after amalgamation or transfer.

PART VI – Winding-up

32. Winding-up petition.
33. Prohibition of voluntary winding-up.

PART VII – Insurance Agents, Brokers and Loss Adjuster

34. Insurance agents.
35. Duties of insurers and agents inter se.
36. Insurance brokers to be registered.
37. Cancellation of registration of an insurance broker.
38. Requirement as to indemnity cover, staff, etc.
39. Suspension of registration.
40. Insurance broker to establish clients’ account.
41. Payment of premium to insurer.
42. Records of transactions, etc.
43. Reinsurance broking.
44. Service of notice, etc.
45. Loss adjusters to be registered.
46. Cancellation of registration of a loss adjuster.
47. Records to be kept by loss adjuster.
48. Attendance to claims by foreign loss adjusters.
49. Power of Commission to investigate agents, brokers and loss adjusters.

PART VIII – Premiums and Commissions

50. Receipts of insurance premium vital to contract of insurance.
51. Restriction on general increases in premium charged on motor insurance, etc.
52. Appointment of ad hoc committee on compulsory insurance business.
53. Limitation on the payment of insurance commission.

PART IX – Disclosure, Condition and Warranty

54. Proposal to contain request for all material facts.
55. Only breach of material and relevant terms to give rise to a right.

PART X – Insurance interest and Assignment in Life or other Insurance

56. No insurance to be made on lives, without insurable interest.
57. No policies on lives without inserting the names of persons interested.
58. Limitation on amount receivable by person with insurable interest.
59. Limitation of application of sections 56-58 of this Act.
60. Assignee of life policies may sue in his own name.
61. Notice of assignment to be given.
62. Assignment by endorsement or separate instrument.
63. Notice of assignment to be acknowledged.

PART XI – Insurance of Property

64. Insurance of building under construction.
65. Insurance of public buildings.
66. Money insured on houses burnt, how to be applied.
67. Insurance of imports to be effected with insurer in Nigeria.
68. Insurance of third party property damage.
69. Settlement of claims.
70. Time to settle claims.
71. Dispensation with police report in certain motor accident cases.

PART XII – Miscellaneous and Supplementary

72. Contract with foreign insurer and reinsurer.
73. Protection of interests of the beneficiaries.
74. Advertisement.
75. Misleading statements, etc.
76. Prohibition of certain rebates.
77. Restriction on loans to directors, etc.
78. Security and Development Fund.
79. Code of Conduct.
80. Jurisdiction and prosecution.
81. Offences as to returns.
82. Appointment of receivers where certificates is cancelled.
83. Continuation of life insurance business of insurer in liquidation.
84. Additional penalties to be imposed on insurers.
85. Restriction on use of the word “Insurance” or “Underwriter”.

PART XIV – Administration-Enforcement

86. Administration ofthis Act.
87. Obstruction of public officers.
88. Offence by insurers in relation to investments.
89. Misrepresentation by public officers.
90. Offences by body corporate.
91. Powers as to production of books, etc.

PART XV – Supplementary

92. Inspection of documents, etc.
93. Original documents to be accompanied by two certified copies.
94. Service of process.
95. Conformity with the National Insurance Commission Act, 1997.
96. Compounding of fees.
97. Fees.
98. Repeal and Savings.
99. Repeal of section 4 of the National Insurance Corporation Act, 1969 and section 7 of the Nigerian Reinsurance Corporation Act, 1977.

100. Companies and Allied Matters Act, 1990, etc., to supplement this Act.
101. Regulations.
102. Interpretation.
103. Citation.

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INSURANCE ACT

An Act to provide for a New Insurance Act.

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[Commencement.] [1st January, 2004]

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ALPHABETICAL INDEX TO THE LAWS OF NIGERIA (UPDATED TO 2018)