Dana: Insurers must pay victims’ families, NAICOM insists

The National Insurance Commission has said the lead insurer of the Dana Air plane that crashed in Lagos on June 3, 2012, Prestige Assurance Plc, and the foreign reinsurer, AON Reinsurers of London, are largely responsible for paying the families of victims of the accident.
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The Commissioner for Insurance, Mr. Fola Daniel, who said this in a telephone interview with our correspondent on Monday, gave an assurance that the victims’ relatives would be promptly and appropriately settled in line with the contracts entered into by the underwriters and Dana Air.
There had been anxiety that the victims’ families might not be adequately compensated following a story by     THE PUNCH on Tuesday that the crashed plane was not properly insured because the lead underwriter did not pay the premium due to the local companies that collaborated with it to insure the plane.
However, Daniel said the issue of non-payment of premium to the co-insurers would not disturb the payment of compensation because the lead underwriter of the plane had already commenced the claims settlement procedure.
He said, “I have called Prestige Assurance and it has said that the claims will be 100 per cent settled; there is no problem with that.
“Seventy per cent of the risk was well insured abroad, Prestige Assurance is responsible for the total claims payment and it has assured that the relatives will be promptly settled.”
The Managing Director, Prestige Assurance, Mr. Anand Mittal, also told our correspondent that so far, the company had received 22 applications from relatives of the victims to collect the claims of their deceased members.
The company had led six other local insurance firms to insure 30 per cent of the risk locally, while the remaining 70 per cent was reinsured abroad by AON Reinsurers.
The local co-insurers are Nem Insurance Plc, Aiico Insurance Plc, Continental Reinsurance Plc, Leadway Assurance Company Limited, Sterling Assurance Limited and Standard Alliance Insurance.
“So far, only 22 families have approached us for the insurance claims of their relatives who died in the crash; funds have been made available to settle them,” Mittal said.
  The lead underwriter, however, said that the insurers and reinsurers of the aircraft ,accident victims ,leg problems,accident,light weight wheel chair,lightwieght,light weight,chair,wheel,would pay $100,000 or N15.7m to the relations of each of the victims, which was the internationally acceptable standard.
According to him, two centres have been opened in Lagos and Abuja for the relatives to process their insurance claims upon the presentation of necessary documents.
The insurer said the claims payment to the third party victims, which would cover both lives and properties lost, would commence immediately the amount was ascertained.
While responding to the question on non-payment of premium to the co-insurers of the plane, Mittal said, “The account is an ongoing thing, there are so many accounts; it is not only Dana that we co-insured, there are accounts where premiums are either to be paid or taken.”
He also explained that Prestige used to retain only 10 per cent of the risk in the country, but recently increased it to 30 per cent because of local content policy of the government.
“What matter most at this moment, he added, is to ensure that the claims were promptly paid to the relatives of those who died in the crashed plane,” he said.
  Some of the co-insurers of the plane had told NAICOM at a closed-door meeting that they had not yet received premium on the policy as at the time loss was recorded.chair
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