Underwriter settles policyholders with N12m surplus

NAICOM

Indigenous Islamic model insurance operator, Noor Takaful, has distributed surplus worth over N12 million to its policyholders across the country.

The National Insurance Commission (NAICOM), licensed Noor Takaful, in April 2016, and started operation in 2017, by providing
ethical type of insurance.

The Chairman of the company, Ambassador Shuaibu Ahmed, said at the distribution exercise held at its Lagos office that the payment of the surplus was made possible by the model operated by Noor Takaful, which he called, “a win-win” insurance.

The model operates on the concept of contributions made by the participants (insured), which are pooled into a common fund managed by the Takaful operator.

Some of the products offered include Noor Motor comprehensive Takaful, Noor House owners/householders; Noor Fire and Special Perils, Noor Personal Accident Takaful, among others.

He explained that the company believes that policyholders should be able to enjoy some benefits especially when claims have not been made throughout the year.

He assured that the surplus payment would continue yearly as long as people have not made claims to take all the money in the risk fund.

He said: “This is the first time that policyholders in the Insurance industry in Nigeria are getting something back from the premium or contributions they have paid with an insurance company.

“The normal thing is, if it is a car Insurance you have or fire policy, every year, you just pay that premium. When the year finishes, you are coming back next year and say, ‘pay another premium’ and goes on like that for the next 30, 40 or 50 years as long as you are going to continue holding that policy.

“In our own case, we said it is only fair when a policyholder has made payment for a policy, and at the end of the year he has not made any claim for a loss on that policy, then he should get something back.”

A Non-Executive Director, Stephen Muia, said Noor sets aside the premium paid by policyholders for the purpose of settling claims. “We separate our management expenses and running cost funds from the funds that we use for settlement of claims,” he said.

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