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Insurance Broking and Bidding Fee

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The practice of paying a fee for bidding for work is becoming rampant and this is not a best practice neither is it a form of good governance. Bidding is expected to bring out the best for the job at hand but in a situation where the best could not pay and bid, the country has lost the opportunity of putting his best foot forward.

The bad practice has even eaten deep into our system as even National Youth Service Corps (NYSC) members are to pay for scrath card for them to know where to serve their father’s land. This is unfair as many of us went to school from Nigerian background which is not a developed economy.

That the practice is now finding its way into insurance broking business is curious as insurance brokers are professionals like doctors, lawyers accountants, amongst others and these professionals are never asked to pay bidding fee to participate in the process of doing their work.

It is not surprising that the President of the Nigerian Council of Registered Insurance Brokers, Mr. Ayodapo Shoderu, has kicked against this practice and advised insurance brokers not to pay any fee to secure a business.

At a recent brokers’ evening in Lagos which was sponsored by Prestige Assurance Plc, the President of the Council, Mr. Ayodapo Shoderu, stressed the council’s disagreement with this ugly practice.

“May I seize this opportunity to again ventilate the views of the council on the grievance of our members who are made to pay bidding fees as prerequisite for offering insurance broking services to some companies or government institutions,” he said.

According to him, insurance brokers, being professional service providers, are like lawyers, architects and accountants who should not be placed under such burden and added that the management was dissuading members from paying such exploitative fee.

Shoderu noted that the NCRIB and Nigerian Insurers Association Joint Technical Committee were working on the vexatious issue and promised that the problem would soon be finally resolved.

He stressed that it was its statutory responsibility to publish the names of financial members of the council in some national dallies annually.

“The secretariat has commenced the collation of all financial members, and all is set for the publication of same in some national newspapers for the 2015 business year,” he stated.

While commending the President-elect, Major General Muhammadu Buhari (Rtd), he said Nigerians were looking forward to a positive change as promised during the electioneering.

He said that the insurance industry would play a catalytic role for the nation’s development.

Apart from helping government to be prudent in spending through mitigation of losses on its assets, he said the insurance industry could also help to boost the nation’s Gross Domestic Product (GDP) as well as reduce the unemployment rate.

“Insurance industry has the capacity to generate not less than 5,000 jobs annually, thus reducing unemployment rate greatly,” he said.

Shoderu suggested that the Buhari government should pay special attention to the insurance industry by eliminating all anti-insurance practices across all levels of government.

Among others, government must include insurance premiums in the budgets of its agencies and ensure that all its agencies are insured against risks rather than viring the money to other areas under any premises.

Going forward, paying bidding fee for professional service is uncalled for and anything that will have the semblance of corruption should be done away with for the inclusive growth of the nation.

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