Insurance World

Guinea Insurance Suspension: High Court Issues Restraining Order Against NAICOM

...Orders NAICOM, Guinea To Maintain Status Quo



BY NKECHI NAECHE—-The Federal High Court sitting in Abuja yesterday gave order restraining the National Insurance Commission (NAICOM) from the purported suspension of Guinea Insurance Plc from writing new businesses.

The court, in a ruling by  Hon. Justice  I. E. Ekwo granted an order in a suit that was filed by by Guinea Insurance Plc with suit No: FHC/ABJ/CS/151/2019 against the Commission on the 6th day of February, 2019.

“An order of mandatory injunction restraining the defendant, whether by itself, or  assigns, successor-in- title,  personal representative, agents  or privies or any other person or body of persons( however described) acting for it or at its instance or behest, from enforcing or taking  any steps whatsoever, including, without limitation, writing letters, issuing directives and/ or instructions of the plaintiff or any other person or entity; or taking out publications  or any other acts; with intent , ( or, in respect of such acts having) the likelihood or potential, to halt, stop, disrupt, frustrate or defeat;  or in any way other way whatsoever, undermine or negatively impact  the operations and / or  business  of the plaintiff; for any reasons whatsoever arising from, connected to,  based upon or touching or concerning the compliance  with the directives contained in the defendant ‘a  letter of 28th January, 2019 pending  the hearing  and determination of the motion on notice.”
It held that all the parties should maintain the status quo, pending the hearing and determination of the motion on notice before the court.
The case was later adjourned to 18th February, 2019 for motion on notice.
It was gathered that NAICOM on January 28, 2019 suspended the company from underwriting new businesses but maintain the existing businesses in its portfolio until some issues are resolved by the company.

Some of the issues according to NAICOM includes its failure to appoint a substantive Managing Director; secure reinsurance treaty, among others.

But Guinea on its part denied the purported suspension in a statement it released recently that its attention has been drawn to various newspaper publications wherein, it was expressly reported that Guinea Insurance Plc  has been suspended by the National Insurance Commission (NAICOM) from writing new businesses on Thursday, 31 January, 2019. According to the newspaper reports, “NAICOM, it was gathered, suspended the company because of its failure to appoint a substantive Managing Director, failure to secure reinsurance treaty, among others.”

On the basis of this, we are constrained as a Company to set the record straight by informing the general public, business associates, shareholders, prospective investors and policyholders that the report posits compelling stand for a rebuttal as the Board of Guinea Insurance Plc had on 15th February 2018 appointed Mr. Babatunde Oshadiya as Managing Director/Chief Executive Officer of the Company and the proposal for his appointment was submitted to NAICOM for approval. The said notification captioned “Guinea Insurance appoints Oshadiya MD/CEO” was uploaded on Nigerian Stock Exchange (NSE) portal and also published in various Nigerian media namely: The Punch, Business Journal, The Authority Daily, Blueprint, Supernews, Newscorner, The Revealer, Businesstodayonline, Inspenonline etc. between 2nd – 7th March, 2018.was published in a press statement.

Meanwhile, on the reinsurance treaty, there is available and incontrovertible evidence showing that Guinea Insurance Plc has a treaty backup for 2019 packaged by its Lead Reinsurance Broker – Glanvill Enthoven Reinsurance Brokers Limited. On 17th December 2018, Glanvill Enthoven Reinsurance Brokers Limited sent the Guinea Insurance Plc 2019 Reinsurance Treaty Cover Notes to the Company; which documents have been duly delivered alongside all contracting signed slips as evident in the acknowledgement letter stamped as “received” by NAICOM on 18th December 2018.

The Board and Management of Guinea Insurance Plc is currently engaging NAICOM with a view to resolving all attendant issues to the said publication within the shortest possible time.

We are an upwardly mobile company, peopled with skilled professionals, our strength is made manifest in our passion for high standards; the single-minded determination to emerge a world class enterprise and our conscious obligation to meet regulatory deadlines.



Related Articles

One Comment

  1. Unbelievable,an unnecessary restraint to seek new insurance accounts whilst you can renew the existing accounts – you can imagine that there is not justify for the clampdown by NAICOM because the underwriting rules and conditions which subsists for existing insurance accounts prevails when handling new accounts.The decisions is inconsequential in the history of Insurance supervisory body in our nation at all!!!

Leave a Reply

Your email address will not be published. Required fields are marked *