These are some of the frequently asked questions from the Pool and our responses:
What are the classes of liability insurance policies the Pool operates on?
Motor, Public/Product Liability, Workmen’s Compensation, General Third-Party Liability, Contingent Employers’ Liability, Occupiers/Builders’ Liability, Professional Indemnity, Directors’ and Officers’ Liability.
Are there expected minimum premium to be ceded to the Pool?
Arrangement between the Pool and members is akin to the Quota Share arrangement on the basis of 60/40.
Is cession to the Pool the same for all classes of business by members?
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.
There is already a pre-paid premium on our Liability treaty, and we would want to know how best to utilise the Pool facility.
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?
What are the exclusions and exceptions to Pool’s risks acceptance?
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
From indication above, does the Pool support layered liability policies?
The Pool’s arrangement with the members is on a Quota Share basis and does not support layered liability policies.
Are members’ participation in the Pool recognized by NAICOM?
The Pool issues members Cover Note which forms part of the documents submitted to NAICOM on yearly basis.
Will extensions to Terminal and Pollution liability be allowed?
These are not part of the standard covers; should there be request for this, members should notify the Pool to enable us liaise with our reinsurers.
What is the Pool’s turn-around time on claims payment to members?
Claims recovery are deducted directly by members at source. Where there is a Cash Call, the Pool reimburses members as soon as such request is made.
How long does the pooling arrangement last?
The Pool is a going concern with the objective of been in business for the future.
What are other benefits available for members not available in conventional reinsurance arrangement?
Members are owners of the Pool and they participate in its fortune with payment of annual surplus and consolidated surplus (at year five of the Pool’s rolling plan).
Being a member of the Pool, what is the capacity we stand to enjoy?
Members have a Five Hundred Million Naira (N500,000,000) cover on each of their liability insurance policies.
What is the rate of Commission enjoyed by Pool members on the policies ceded to the Pool?
The Pool grants whooping 37.625% Commission (including 7.5% VAT on Commission) on all businesses ceded to the Pool.
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