Stakeholders in the insurance sector have cautioned the federal government against dabbling into issues of unclaimed dividends in the capital market, insisting that such funds should be re-channeled to the affected firms for reinvestment.
The concerned stakeholders argued that the government as regulators had no business in setting up a trust fund where those unclaimed dividends will be channeled because most of the key players are private entities.
NATIONAL ECONOMY gathered that some key players in the insurance industry have dragged the federal government to court over the issue.
They alleged that the government is mulling a trust fund, where it hopes to channel all dividends left unclaimed by investors.
They equally lamented the level of scepticism among citizens regarding insurance matters, insisting that it is one area where government should be more proactive, especially in strengthening enlightenment to help minimise risks associated with losses among the populace.
Their views were aggregated on Wednesday, in Abuja at the Annual General Meeting of Veritas Kapital Assurance Plc, where shareholders were informed that payment of claims by the company was at the threshold of over half a billion naira as of June 2022.
At the meeting which had all the directors and chairman re-elected, the company posted a profit after tax of N570, 363million for the 2021 fiscal year which ended December 31st.
Commenting on the dividend claims, Patrick Ajudua, a shareholder with the company said, “I am the national chairman, new dimension shareholders association of Nigeria, we talked about the unclaimed dividend because its money meant for investors in the capital market, as such government has no reason to lay claim, that money doesn’t belong to them by setting up a trust fund.
“We believe that unclaimed dividends, if not claimed should be sent back to the companies for reinvestment and a return back to the shareholders. So, the government has no business claiming it, that money doesn’t belong to them.”.
Also commenting on how the insurance business in Nigeria can thrive, Ajudua said building trust was necessary to boost the sector.
“For insurance business in Nigeria, the first key thing is trust and I said it, once trust can be guaranteed, the people know that if I pay premium my claims will be settled, I think people will patronize insurance business, awareness should also be strengthened so that the people will know the benefit to them, we have been having a building collapse in Nigeria, people die and there is no insurance on that, who is the ultimate loser, the regulators must ensure they create more awareness for insurance firms in Nigeria,” he said.
Earlier, the managing /CEO of the insurance firm, Kenneth Egbaran, corroborated some of the shareholders, saying there was the need for a robust enlightenment campaign.
He stressed that while insurance companies continue to create awareness, the enforcement of insurance policies will help to deepen its penetration for national growth because insurance policies offer lots of benefits.
Chairman of the firm, Nahim Abe’ Ibraheem, who got re-elected unopposed by the shareholders, explained that insurance firms were operating in a volatile economic environment, where most of the clients were left with options of either putting food on the table for their families or paying premiums.
He said the company hopes to navigate the insurance business with an injection of contemporary technology to post a more impressive output in the current fiscal year.
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