Reps launch forensic probe into N30bn unsettled insurance claims for police, military personnel

The House of Representatives has mandated its Committee on Insurance and Actuarial Matters to carry out a detailed forensic investigation into over ₦30 billion in unsettled group life insurance claims tied to the Nigeria Police Force, the Head of Service, and the Ministry of Defence.

This decision was made during Wednesday’s plenary following the adoption of a motion titled ‘Breaches and Other Infractions of Some Federal Government Institutions on Insurance and Actuarial Matters Using Forensic Auditors.’ The motion was introduced by Mr. Sulaiman Gumi, who represents the Gummi/Bukkuyum Federal Constituency in Zamfara State.

While presenting the motion, Gumi highlighted the systemic issues plaguing insurance practices in the country. “The House is concerned that lack of transparency and accountability in insurance practice in Nigeria today has resulted in over ₦30 billion unsettled claims in the group life insurances of the Nigeria Police Force, Head of Service (for Federal Civil Servants), and Ministry of Defence (for the Nigerian Armed Forces),” he stated.

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Gumi also criticized the outsourcing of insurance services to foreign entities, explaining its economic impact. “We are aware that over $1 billion that should have been retained in Nigeria, if all insurance practitioners are given the option of the right of first refusal, is being taken abroad, which affects the nation’s economy, thereby always weakening our insurance sector and depleting our foreign reserves.”

He further decried breaches of the Local Content Act, noting that “90 per cent of the risks of some Federal Government organisations are placed outside the country.” According to him, this has had a devastating effect on the families of deceased federal personnel, many of whom remain unpaid their rightful entitlements or face deductions that shortchange them.

“These breaches have given rise to excessive cession and retrocession of businesses in breach of the Local Content Act, to the extent that millions of families of the deceased Federal Government’s personnel that are the beneficiaries suffer because they were not paid the entitlements of their breadwinners,” Gumi said.

He also criticized the lack of cooperation from government agencies and ministries, stating, “Letters to the Federal Government’s agencies and ministries by the Committee on Insurance and Actuarial Matters are being treated with ignominy. This, if not nipped in the bud, will soon become the rule rather than the exception and negatively impact the overall oversight functions of the House of Representatives.”

The motion received unanimous support from lawmakers present at the plenary. The House directed the Committee on Insurance and Actuarial Matters to complete its investigation and report back within four weeks for further legislative action.

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