April 1, 2023



Unclaimed dividend: Stakeholders name for warning

Stakeholders within the insurance coverage sector have cautioned the federal authorities on the problems of unclaimed dividends within the capital market emphasizing that such funds ought to quite be channelled into reinvestment for affected corporations.

The involved stakeholders argued that the federal government as regulators had no enterprise in establishing a belief fund the place these unclaimed dividends will probably be channelled as a result of many of the key gamers are non-public entities.

Those that spoke to our correspondent famous alleged that authorities is mulling a belief fund, the place it hopes to channel all dividends left unclaimed by traders.

They lamented the extent of scepticism amongst residents concerning insurance coverage issues, insisting that it’s one space the place authorities must be extra proactive, particularly in strengthening enlightenment to assist reduce dangers related to losses among the many populace.

The views had been expressed on the Annual Normal Assembly of Veritas Kapital Assurance Plc in Abuja the place shareholders had been knowledgeable that cost of claims by the corporate was on the threshold of over half a billion naira as of June 2022.

The corporate posted a revenue after tax of N570, 363million for the 2021 fiscal 12 months which ended December thirty first.

Nationwide Chairman New Dimension Shareholder Affiliation of Nigeria (NDSAN) Patrick Ajedua stated “We talked in regards to the unclaimed dividend as a result of its cash meant for traders within the capital market, as such authorities has no motive to put declare, that cash doesn’t belong to them by establishing a belief fund.

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“We imagine that unclaimed dividends

if not claimed must be despatched again to the businesses for reinvestment and a return again to the shareholders. So the federal government has no enterprise claiming it, that cash doesn’t belong to them”.

He defined that “For insurance coverage enterprise in Nigeria, the primary key factor is belief and I stated it, as soon as belief may be assured, the individuals know that if I pay premium my claims will probably be settled, I feel individuals will patronize insurance coverage enterprise, consciousness also needs to be strengthened in order that the individuals will know the profit to them, we have now been having a constructing collapse in Nigeria, individuals die and there’s no insurance coverage on that, who’s the final word loser, the regulators should guarantee they create extra consciousness for insurance coverage corporations in Nigeria”.

MD/CEO of Veritas Kapital Assurance Plc, Kenneth Egbaran famous that there was the necessity for a sturdy enlightenment marketing campaign.

Chairman of the agency, Nahim Abe’ Ibraheem who bought re-elected unopposed by the shareholders defined that insurance coverage corporations had been working in a risky financial atmosphere, the place many of the purchasers had been left with choices of both placing meals on the desk for his or her households or paying premiums.