Standard Alliance Insurance Plc has dragged the insurance industry’s regulator, the National Insurance Commission, to the Federal High Court in Lagos over the cancellation of its operating license.
The insurance firm, whose operating license was revoked in June this year, disclosed this in documents made available.
In a summon taken by Omotayo Olatunbosun of Kunle Adegoke & Co of 1 Abiodun Famodimu Close, GRA Ikeja, Lagos, dated August 2022, the firm sought the reversal of NAICOM’s decision.
It sought the prayer of the court on “a declaration that the purported notice of cancellation of registration of Standard Alliance Plc issued by the 1st defendant dated the 21st day of June 2022 is a nullity ab initio.
“A declaration that all the actions of the 2nd defendant since his appointment as receiver/liquidator of Standard Alliance Insurance Plc is a nullity and, therefore void.
“A declaration that all the actions of the 2nd defendant since his appointment as receiver/liquidator of Standard Alliance Insurance Plc is a nullity and therefore void.”
According to the documents, Standard Alliance said it had notified NAICOM of investors who were ready to stabilize the capital of the company by providing equity of $8m, which was about N4.5bn.
The firm also said it had appealed to the Minister of Finance, Budget, and Planning to intervene but was yet to get any response before the cancellation of the operation license.
It would be recalled that in June, NACOM canceled the Certificates of Registration of Niger Insurance Plc and Standard Alliance Insurance Plc.
It said in a statement, “This is to notify all insurance stakeholders and members of the public that the National Insurance Commission has canceled the certificates of registration of Standard Alliance Insurance Plc, RIC – 091 and Niger Insurance Plc, RIC – 029 with effect from the 21st day of June 2022.
“Consequently, the commission has appointed Sanya, Ogunkuade Esq of Plot 217, Upper Grace Plaza, 3rd Floor (Left Wing), Shetima Munguno Crescent, Behind Julius Berger Equipment Yard, Utako, Abuja as the Receiver/Liquidator for Niger Insurance Plc and, Kehinde Aina Esq of Aina Blankson LP, 5/7, Ademola Street, SW Ikoyi, Lagos as the receiver/liquidator for Standard Alliance Insurance Plc.”
NAICOM was however yet to react to the new development as of the time of filling this report.