Document background
A Loss of Coverage Letter is a crucial document in the Nigerian insurance industry that serves as an official notification of insurance policy termination. This document is used when an insurance provider needs to inform a policyholder that their coverage will be or has been terminated, whether due to non-payment of premiums, policy expiration, change in eligibility, or other valid reasons. The letter must comply with Nigerian insurance regulations, including the Insurance Act of 2003 and NAICOM guidelines, which specify requirements for notice periods and content. It typically includes detailed information about the policy, reason for termination, effective date, any refund calculations, and options available to the policyholder. The document plays a vital role in risk management and legal compliance, protecting both the insurer and the policyholder by providing clear documentation of the coverage termination.
