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Gov’t Removes NIC Monopoly

Business

Gov’t Removes NIC Monopoly

The Office of the President has asked the Clerk of Parliament to ensure that a level playing is created for all companies operating in the insurance industry.

A letter from the Secretary to the President dated 3rd January, 2019 and addressed to the Clerk of Parliament states, “His Excellency the President is concerned that Section 31 of the Appropriation Act, 2019 does not inject competitiveness into the insurance industry and has the propensity to stifle the growth of other insurance companies. On this note, His Excellency the President is of the view that companies should endeavour to create their own comparative advantages and attract clients within a liberalized and business-friendly environment”.

In a letter dated 27th February, 2019 addressed to the Secretary to the President, the Clerk of Parliament,  Hon. Paran Umar Tarawally wrote, “I write with reference to the above subject matter (Re: Finance Act, 2019) and to inform you that the request by His Excellency the President to review Section 31 of the Finance Bill (Act 2019) with a view to addressing monopoly by National Insurance Company (NIC) in the insurance industry, has been carried out by expunging the said Section 31 from the Bill in its entirety…In light of this review by Parliament, Government Ministries, Departments and Agencies, and other Government Establishments are free to conduct insurance business with any Insurance Company of their choice”.

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