Standard Alliance Insurance Plc is threatening legal action against Nigerian Insurers Association (NIA) accusing the Insurance Umbrella body of denying it right to fare hearing before proceeding to publish its expulsion.

The firm also demanded that the association should immediately withdraw the letter of suspension, termination and expulsion not exceeding seven clear days and pay N10 billion as damages for loss of reputation resulting from the malicious publication.

The company complained that Mr. Ganiyu Musa, who doubles as Chairman of the Governing Council of NIA and Managing Director/CEO of Cornerstone Insurance Plc given the fact that there is a the pending case between both companies before a Federal High Court and the Economic and Financial Crimes Commission (EFCC) ought to have recused himself from the matter.

Standard Alliance also insisted that the NIA erred in expelling it from the Association over the issue of claims stating that it paid claims of N2.7 billion in 2018, N1.9 billion in 2019 and N1.1 billion in 2020 despite the ravaging effects of the COVID-19 pandemic.

The underwriting firm stated these in a letter entitled: RE: Purported Expulsion of Standard Alliance Insurance PLC From The Membership Of Nigerian Insurers Association, dated Monday, July 5, 2021, signed by its lawyer, Ebun-Olu Adegboruwa (SAN) and addressed to the Director-General of NIA, Mrs. Yetunde Ilori.

The solicitor alleged a circumvention of his client’s right to fair hearing as guaranteed by the 1999 Constitution, stating that there is nothing in the Association’s Constitution or within professional ethics in the insurance industry which entitles the Association to publish to the general public such expulsion and to give such malicious reason so calculated to damage the credibility and reputation of his client to the insuring public and indeed the whole world.

“In the light of the foregoing, we have our client’s firm instructions to demand the immediate withdrawal of the letter of suspension, termination and expulsion not exceeding seven (7) clear days from the date of receipt of this letter. The same to be published with an unconditional apology in all the national newspapers wherein it was advertised, with similar or greater prominence.

“In addition, our Client demands from the Association, the payment of N10,000.000.000.00 (Ten Billion Naira Only) as damages for loss of its reputation resulting from the malicious publication,” he said.

It stated that if at the expiration of the seven clear days from the date of receipt of the letter. he request on behalf of his client is not met, they shall have no further recourse to NIA but will proceed to execute his client’s further instructions to explore all lawful means of redress against the Association. including taking steps to nullify the purported expulsion and to seek damages.