NBCC wants FG to enforce compulsory insurance

The Nigerian British Chamber of Commerce (NBCC) has asked the Federal Government to aggressively enforce compulsory insurance to boost Nigeria’s insurance industry.

Dapo Adelegan, president, NBCC, who stated this at the chamber’s Nigerian Insurance Industry colloquium in Lagos, said the Third Party Motor Vehicle Insurance and other related compulsory insurance schemes should be enforced to strengthen the industry and make it viable for investment.

Adelegan, who was represented by his deputy, Akin Olawore, urged Nigerians to embrace insurance to secure their lives and property against accident or sudden loss. He called on the stakeholders in the industry to embark on massive awareness creation on the benefits of insurance to individuals and corporate organisations.

“Nigerians need lots of enlightenment about the benefits of insurance to their businesses and properties. NBCC will continue to work with stakeholders in the industry through advocacy to engage Nigerians on the numerous gains of insurance in the overall development of the nation’s economy,” Adelegan stated.

Gus Wiggle, chairman, Nigerian Insurers Association and managing director, Linkage Assurance Plc, in a paper entitled, ‘Redefining the Nigerian Insurance Industry in an Era of Change’ identified some of the challenges facing the sector, which include lack of adequate enforcement of compulsory insurance, tax discrimination against insurance industry, low level of financial literacy, high cost of doing business, poor public perception of insurance, amongst others. Wiggle urged the government to ensure enforcement of the compulsory insurances such as Public Building Insurance, Insurance of Building under Construction, Group Life Insurance for employees and others to increase penetration.

“There are over 16 million vehicles on our roads and only about 4 million are legally insured. This means we have over 12 million uninsured vehicles in Nigeria. Government should enforce the compulsory insurance to enhance insurance business in the country in this era of change,” Wiggle also said.

Wiggle urged the government to harmonise and consolidate several insurance laws in the country for effective enforcement. He noted that this has become necessary to make the industry relevant in the government’s change agenda, through economic diversification, with focus on agriculture and solid minerals.

ODINAKA ANUDU