The Joint Committee on Transport and Claims & Petitions of the House of Representatives has expressed concern over the failure of the National Insurance Corporation of Liberia (NICOL) to collect ten percent (10%) from insurance companies operating in the country, as required by law.
Section 17 (a) of the People Redemption Council Decree #18, states in pertinent part that every registered insurer or agency or broker or intermediary shall in respect of every insurance policy issued or renewed or replaced by it on or after the 1st day of November, 1982 cede to the National Insurance Corporation of Liberia an amount equal to ten percent (10%) of the sum insured in the policy, and shall accordingly pay forth with to the Corporation in respect of any such policy an amount equal to ten percent (10%), as the case may be of the premium received by the insurer in respect of the policy.
Lawmakers described the situation as a disservice on the part of NICOL, noting that, instead of enforcing the collection of these statutory fees, NICOL continues to rely on government salaries for its operations.
NICOL, in a public hearing Tuesday, informed the committee that there are currently 16 insurance companies operating in Liberia. It also pointed out that under the Amended Insurance Act of 2014 regulatory authority over the sector rests with the Central Bank of Liberia (CBL).
To ensure accountability, the committee has requested NICOL to submit copies of NICOL’s license, Decree #18, the Amended Insurance Act of 2014; the Insurance Treaty; and evidence of efforts made to collect the mandated 10 percent from insurance companies.
The Joint Committee further mandated that NICOL and the Central Bank of Liberia appear for a public hearing on Tuesday of next week to provide clarity on the matter.
The Joint Committee on Transport and Claims and Petitions is chaired by Representative Momo Siafia Kpoto.
