National Insurance Commission (NAICOM) has been restrained by an Abuja Federal High Court order, preventing the commission from intervening in the underwriting of new businesses by Guinea Insurance Plc.
The Federal High Court in its order, restricted the insurance regulator from suspending Guinea Insurance Plc from writing new businesses after the company filed a lawsuit against NAICOM.
Nairametrics had reported that NAICOM suspended the firm because of its failure to appoint a substantive Managing Director, failure to secure reinsurance treaty, among others.
According to media reports, the court, in a ruling by Justice I. E. Ekwo, granted an order in a suit that was filed by Guinea Insurance Plc with suit No: FHC/ABJ/CS/151/2019 against the Commission on February 6, 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,” the court ordered.
The court also ordered that pending the hearing and determination of the motion on notice before the court, both NAICOM and Guinea Insurance Plc should maintain status quo.
The underwriting firm had denied the suspension in a statement it released recently. It stated that its attention was drawn to various newspaper publications wherein — it was expressly reported that Guinea Insurance Plc had been suspended by NAICOM from writing new businesses.
Meanwhile, on the reinsurance treaty, the firm stated;
“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,” it said.
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