PRC Decree # 81 established the National Insurance Corporation of Liberia (NICOL) on February 9, 1984. According to Section 1 of this Decree, which states: “The Corporation shall be solely owned by the Government of the Republic of Liberia. It shall have succession in its corporate name, may sue and be sued, and shall adopt a corporate seal. Its principal office shall be located in Monrovia, Montserrado County, Republic of Liberia”
Actual operation commenced in 1985 with an initial staff of 17 (seventeen) personnel, including one expatriate from Yugoslavia who served as Technical Manager. With the meager amount provided by the Government of Liberia for operation, NICOL went into the business by relying on its capital market base; which gives the Corporation the exclusive right to provide insurance coverage for all Government’s assets or any Institution in which the Government of Liberia holds fifty percent share or more.
With the support of the Liberian Government, NICOL’s mandate was actualized and made tremendous impact on the lives of Liberians. NICOL was viable to the extent that it was able to lend Government a substantial amount of US$ 3,000,000.00 (three million United States Dollars) within two years of its operation to help with the payment of salaries for civil servants.
The Decree creating NICOL saw the need to settle Government’s financial obligation for hospitalization, burial and related death benefits due to be paid justly to beneficiaries. The wisdom behind the formation of NICOL was also due to the limitation in the Compulsory Liability Insurance Law pertaining to auto insurance which only apply to the private sector.