Lydia Lariba Bawa – Former Commissioner of NIC
Sethi Brothers Ghana Limited, which deals in steel and iron, has threatened to take legal action against the National Insurance Commission (NIC).
Lawyer for the steel company, Godwin Adjei-Gyamfi, told BUSINESS GUIDE that NIC, under the leadership of its former Commissioner, Lydia Lariba Bawa, failed in 2015 to take action against Regency NEM, a Nigerian insurance firm after the insurer reportedly failed to pay claims to Sethi Brothers Limited to the tune of $2,355.135.14.
According to Lawyer Gyamfi, “On 16th October 2009, Sethi Brothers Ghana Limited took a Marine Open Cover Policy with the then Regency Alliance Insurance Limited, now called Regency NEM Insurance with its head office in Nigeria.”
He explained that in 2014, Regency NEM Insurance agreed to issue Sethi Brothers Ghana Limited with Marine Open Cover Insurance to insure 1,352 bundles of reinforcing steel bars from China.
On 21st July 2014, he recounted, the cargo vessel commenced journey under Marine Open Cover certificates number C/MRC/K09/003540Z from China to Tema.
According to him, on 31st July 2014 while sailing, the cargo vessel was involved in a collision with another vessel unknown to Sethi Brothers Ghana Limited and it got damaged.
He stated that “On 27th of November 2014 pursuant to the notification and the potential claim Regency NEM Insurance appointed Lloyd’s Agent to inspect the condition of the damaged cargo. They confirmed that the entire cargo had indeed been damaged.”
Following their report, a claim was submitted to Regency NEM Insurance Limited for the sum of $2,355.135.14, the lawyer explained, adding that in response on 30th January, 2015, Regency NEM Insurance presented Sethi Brothers Ghana Limited with a “Discharge Certificate Form,” acknowledging liability and accepted the quantum.
However, payment remained outstanding for one year after which Sethi Brothers instructed their lawyer to petition NIC.
The NIC reportedly referred the case to a Marine insurance expert, who found that Sethi Brothers Ghana Limited had a valid claim and that Regency NEM Insurance should pay the outstanding amount to Sethi Brothers Ghana Limited.
Managing Director of Regency NEM Insurance, Bode Oseni, accordingly agreed to deposit GH¢4,000,000.00 in favour of Sethi Brothers Ghana Limited on the advice of Madam Lariba Bawa at the time.
However, a week later, Bode Osen reportedly returned to NIC to tell the Commission that the money he had agreed to pay on behalf of the institution was exorbitant and that they were not going to make any payment.
Sethi Brothers Ghana Limited’s lawyer Godwin Adjei-Gyamfi insisted that NIC should enforce the regulations against Regency NEM Insurance but Madam Lariba Bawa insisted that there was nothing the NIC could do.
On 13th October, 2016, the then commissioner reportedly wrote to Sethi Brothers Ghana Limited that “in view of the uncooperative attitude of the insurer towards amicable arbitration, the National Insurance Commission kindly requests your company to continue the matter in court for determination. Accept our warmest regards.”
Lawyer Adjei-Gyamfi was of the view that the directive for court settlement by the Commission clearly showed regulatory weaknesses.
The NIC, per the law, is mandated to ensure compliance with industry standards and ensure that insurers pay claims to their clients.
But Lariba Bawa asked lawyer Adjei-Gyamfi to sue the Commission.
“I think the matter is in court and the parties should allow the court to make a determination. But if the lawyers think they have a case against the Commission, they can go ahead and sue the Commission,” she told BUSINESS GUIDE.
By Melvin Tarlue