The Nigerian insurance industry has made a significant payout of N83 billion to Britannia-U Nigeria Limited following a devastating fire incident on one of the company’s offshore platforms, the Floating Production Storage and Offloading Facility (FPSO) situated at the former OML 90 field, now PML 6, offshore Ogulagha Kingdom in Warri, Delta State.
The incident occurred on July 18, 2024, and was brought under control shortly after.
A consortium of underwriters settled the claim, initially estimated at $72 million but adjusted to $55 million. NAICOM Commissioner, Mr. Olusegun Ayo Omosehin, praised the industry for prioritising genuine claims and demonstrating its strength and credibility.
Key Highlights:
- Claim Amount: N83 billion ($55 million)
- Initial Estimate: $72 million
- Premium: $170,000
- Total Large Claims Settled: Nearly N180 billion this year
- Industry Impact: Demonstrates strength, credibility, and reliability in settling valid claims
The fire incident, which was reported to the Nigerian Maritime Administration and Safety Agency (NIMASA), resulted in the successful rescue of all 19 crew members onboard. NIMASA worked with other agencies to ensure the safe rescue and evacuation of the crew and initiated an investigation into the incident.
The insurance industry’s responsiveness and commitment to settling claims are crucial in building trust with clients and stakeholders.
By publicising such significant payouts, the industry can work towards changing its negative perception and showcasing its capabilities.