Pensioners, subscribers groan as African Alliance Insurance fails to pay annuities, claims

Things are not rosy for many of the elderly retirees who are entitled to annuities from the African Alliance Insurance Plc as the company has failed to make payments for two consecutive months.

Amid the dire economic situation in the country, many of the pensioners have not received their meagre annuities for May and June 2024 as the insurance company keep making promises.

Subscribers to the company’s investment plans are also battling the same fate with retirees. Those whose investments have reached maturity date for more than four months have not been paid.

The development has created panic among subscribers who fear the insurance company may be in dire financial straits or in the process of liquidation.

When TheCable visited the African Alliance corporate office in Ikoyi, Lagos, on Friday, some aggrieved subscribers and retirees gathered in front of the office complex.

In a shouting match, the aggrieved retirees were demanding to see the management team of the insurance company.

However, one of the police officers attached to the office tried to calm the nerves of the aggrieved customers.

Lilian Nneka, one of African Alliance’s policyholders, travelled from Anambra to Lagos to pressure the company to pay her the claim under the “Alliance Smart Kid” life insurance policy.

According to documents seen by TheCable, the insurance policy commenced on March 1, 2019, and was expected to mature on March 1, 2024.

Nneka told TheCable that she was entitled to a payout of over N500,000 and she had budgeted the money to pay her children school fees following the death of her husband.

She said she had written several letters and made several calls to the insurance company to remind them of the payment.

“They did not answer me in Anambra. So, I decided to come to Lagos. I was here (corporate office) on Monday, Tuesday and Wednesday. I did not come on Thursday because I had cold,” she said.

“The rain on Wednesday beat me. I just want them to pay me off so that I can leave this place.”

Over the past two months, Tunde Abiodun, a retired civil servant from Lagos State Teaching Service Commission, has been shuttling between Sango-Ota in Ogun state and Ikoyi in Lagos to make complaints over the non-payment of his annuities for two months.

Anytime he visits the corporate office of the insurance firm, the customer service representatives always tell him that his annuity will be paid the next day. This has been the trend for two months.

Abiodun told TheCable that the company started delaying in the payment of his annuity in March 2024 and that he received a lump sum of the March and April annuities in the fourth week of April.

The retiree said since April, he is yet to receive any annuity from the African Alliance.

“They are not telling us what is happening. Why exactly are we not receiving our money? Many of us, both old men and women, have been coming here,” Abiodun said.

Just like Abiodun, many Lagos retirees, who are residents of Ogun state, come to the corporate office on a daily basis to lodge complaints about the non-payment of their annuities.

Tony Ogala, a retired customs officer, said his lawyer has written to the insurance company over the non-payment of his annuity.

Ogala said despite making complaints to National Insurance Commission (NAICOM) about the development, the regulator has not done much to relieve the subscribers.

NAICOM SUMMONS BOARD OF AFRICAN ALLIANCE INSURANCE

In a statement released on Friday, the management of NAICOM summoned the board of the insurance company to its headquarters in Abuja.

The regulator directed the company to resolve its challenges and ensure settlement of outstanding claims.

“In addition, the board of directors of the company was directed to immediately submit a turnaround plan for addressing the challenges currently faced by the company which necessitated putting the company under the commission’s regulatory order,” the statement reads

“Given the heightened challenges, the company should expect further actions if they fail to address the issues within the timeline the company has been given.

“The commission wishes to restate its determination to ensure fair treatment of all stakeholders, enforce professionalism and good conduct amongst its licensed operators.”

‘WE WILL MAKE PAYMENTS WITHIN NEXT TWO WEEKS’

Speaking with TheCable, Kelechi Nnamdi, head of brand and media communications at African Alliance, said all the issues will be resolved within the next two weeks.

Nnamdi said the board members are “putting their heads together” to ensure that the funds are available.

“We have had a meeting with NAICOM. We believe that the issue will be resolved within the next two weeks,” he said.