Citizens of Kano State and environs are on the verge of benefiting from a full insurance package that is being worked out between the State government and the National Insurance Commission (NAICOM).
The package, to be driven by a joint committee of both bodies will implement the different compulsory insurances approved under the 2003 insurance Act, provide insurance for markets, small and medium scale enterprises, which is hoped will make Kano third largest premium generating state in Nigeria.
Sunday Thomas, commissioner for Insurance/CEO, NAICOM made the disclosure Wednesday during the sensitisation programme for top government functionaries in Kano State on implementation and enforcement of compulsory insurances.
Thomas said the scheme would create an additional source of internally generated revenue (IGR) for Kano State, and reduction in government exposure in event of disaster that may affect the citizens of the state by shifting the burden to the risk-bearers (insurance companies).
According to him, there will be benefits of financial compensation to citizens who may lose their properties or become disabled in the event of occurrence of insured accidents or disasters etc.
Other benefits include provision of assistance on Fire-Fighting Equipment for the State Fire Service; Job/employment opportunities for citizens of the state; and free risk management education and enlightenment programs for the citizens of the state.
Thomas said the Commission is closely monitoring micro, small and medium enterprises (MSMEs) in the state after the sensitisation workshop in Kano a few months ago, and the interest generated proved that the state is about to explode as another insurance hub in the country.
“Your Excellency, the implementation of motor vehicle third party insurance and other compulsory insurances as contained in the terms of reference of the joint committee with the state government, is indeed a welcome development. It is expected to change the narrative by moving Kano State from its 11th position in the Gross Premium ranking to be among the first three States in the federation.”
According to him, Kano State is a commercial centre with huge population and business potential, and so the adoption and enforcement of the compulsory insurances will no doubt have a multiplier effect on insurance premium, employment opportunities, and the standard of living of the people and the internally generated revenue of the state.
“It is my belief that the committee will work out a fashionable mechanism that will ensure Kano State to be a role model to other states in the country in the area of insurance penetration.”
He urged the Committee to look into the recurrent fire inferno in different markets across the state, which have been causing so much economic havoc on the traders and the government. “One of the cardinal objectives of insurance is to protect insurance service consumers against such disasters by creating the needed awareness that will forestall occurence and where the unexpected happens, compensation will be paid to victims to minimise its impact”,
“Having the markets and goods insured is going to ensure stability and comfort for our people and also save the government some cost that ordinarily would have gone in compensating traders,”Thomas said.
