Fraud Forces Insurers To Set Up E-Payment.

By Favour Nnabugwu INSURANCE companies in the country have stepped up measures to starve off fraud in the industry arising from cash transactions.

The companies now prefer customers to pay through Point of Sale (PoS) terminals at their various locations and agency offices. For instance, AIICO Insurance Plc, said it will leave no stone unturned in its ongoing efforts to bring to book perpetrators of unethical and fraudulent activities uncovered in the company’s dealings with the insuring public.

The Managing Director, Mr Edwin Igbiti, told journalists that one of its agents (names withheld), is presently being investigated for fraudulent practices relating to cash diversions and misrepresentation of the company. Igbiti said that AIICO Insurance is an underwriter of more than 50 years’ experience, the largest life underwriter in Nigeria and one of the biggest Insurance underwriters in the West African sub-region.

He stated that the company has invested in technology and infrastructure to provide multiple payment channels for payment and renewal of Insurance policies. He added that the company encourages its customers to continue utilising these channels which provide instant automation of records.

In the same vein, Mutual Benefits Assurance Plc vowed to investigate the alleged unethical practices by some of its staff while pledging to prosecute anyone found to be involved.

A statement signed by the Head, Corporate Communication, Ellen Offo, said the company remains firm in its drive to maintain and sustain its integrity. “We use this medium to assure our numerous customers that we shall prosecute anyone found to be complicit. Mutual Benefits has zero tolerance for fraud; therefore a report like this is viewed with grave seriousness”. “As deterrence, Mutual Benefits has instituted a policy against payment of cash to members of staff and the accepted mode of payment is clearly stated on all our proposal forms and policy documents.” “In addition, Mutual Benefits has put in place secure and convenient cashless means of payment of premium such as direct debit, bank branch pay-direct, web-pay, online transfer, along with our third party insurance scratch cards,” she added.

Source: Vanguard