Suspected Insurance Fraud: Reps Probe HoS, NYSC, Others

The House of Representatives has begun an investigation of federal government ministries, departments and agencies for alleged fraud in insurance policies.

The House, at the plenary on Thursday, particularly called out the Office of the Head of Civil Service of the Federation and the National Youth Service Corps.

The House has subsequently mandated the Committee on Insurance and Actuarial Matters to “conduct an investigative hearing involving all relevant stakeholders, to identify any breaches and ascertain the veracity of the suspected infractions by the aforementioned institutions.”

Also, the lawmakers mandated the House Committee on Insurance and Actuarial Matters to “engage a forensic auditor to ascertain the level of misapplication of premium.”

The resolutions were passed following the unanimous adoption of the motion moved by the Minority Whip, Gideon Gwani (PDP-Kaduna).

It was titled, ‘Need to Investigate the Breaches, Impunity, a Suspected Insurance Fraud: Reps probe HoS, NYSC and Other Infractions by Some federal government Institutions on Insurance and Actuarial Matters and the Need to Ensure Probity.’

Chairman of the House Committee on Insurance and Actuarial Matters, Darlington Nwokocha (PDP-Isiala Ngwa North/South), also said the probe would be extensive and thorough across the MDAs.

While moving the motion, Gwani alleged that the affected institutions were currently renewing their insurance “with suspected breaches, which will put Nigeria and the Nigerian populace at serious economic and social disadvantage; noting that Nigeria will lose billions of naira, thereby worsening the political and social disequilibrium the nation is currently facing.

“This practice of domiciling some of the insurance ventures outside the country tremendously promote money laundering and illicit financial flow to the tune of several billions of naira in the insurance sector.

“The House is concerned that there are huge unsettled life claims in Nigeria due to the fact that the premium meant for these payments were suspected to have been squandered by some insurance companies and few individuals, and only forensic auditors will bring this to the fore.”