The Nigeria Liability Insurance Pool operation is a form of proportional reinsurance like the Quota Share, Surplus or Facultative Obligatory where Pool members bring their Liability policies to the Pool.
While cedant’s interest in the conventional reinsurance is only limited to the premium ceded to and claims recovered from the reinsurers, members’ interest in the Pool goes beyond such restricted pact as they are the owners of and participate in the fortunes of the Pool.Our Services
There are various benefits that an Insurance Company stands to gain when join the Nigeria Liability Insurance Pool.
Swift response to cash call prompt claim settlement and improved financial strength.
Whooping 35% commission plus 7.5% VAT on premium ceded thus making the Pool much cheaper than the conventional reinsurance.
These are some of the frequently asked questions from the Pool and our responses:
Motor, Public/Product Liability, Workmen’s Compensation, General Third-Party Liability, Contingent Employers’ Liability, Occupiers/Builders’ Liability, Professional Indemnity, Directors’ and Officers’ Liability.
Arrangement between the Pool and members is akin to the Quota Share arrangement on the basis of 60/40.
Cession is the same for all policies except for Motor Comprehensive where 4.5% and Contractors’ All Risks where 15% of premium is ceded to the Pool to cater for the Liability aspects of the risks.
Cession to the Pool depends on how you rank the Pool; for instance, would you feed your treaty before thinking of the Pool or vice versa?
Some of the notable exclusions are participation in: (1) The own damage section of members’ motor policies (2) Exploration, drilling, processing of petroleum gasoline or related products and petrochemical products
The Pool’s arrangement with the members is on a Quota Share basis and does not support layered liability policies.