Insurance regulator, the National Insurance Commission (NAICOM) has reemphasized the need for government to protect its assets against catastrophic events.
The Commission notes that the essence of Insurance of Government Assets and Liabilities is to cushion the impact and reduce the burden that the government would have to bear in likely occurrences of catastrophic events such as natural disasters, fire, accidents, building collapse, injuries or death to third parties, etc, thereby saving the government money which can be channeled towards augmenting the needs of the citizenry, providing infrastructure, and creating employment, among others.
Sunday Thomas, commissioner for Insurance made the remark during the sensitization workshop for insurance desk officers of ministries, departments and agencies of the federal government (MDAs) on insurance of federal government assets and liabilities held in Kaduna.
Thomas said the workshop was convened as part of ongoing efforts to apprise participants of their roles in ensuring adequate protection of assets and liabilities of Government.
He noted that more than before it has become imperative to put in place measures to guide Ministries, Departments and Agencies (MDAs) on procuring adequate insurances for assets under their watch.
“Section 7 (d) of the National Insurance Commission (NAICOM) Act 1997 stipulates that the Commission shall ensure adequate protection of strategic government assets and other properties, while Section 7 (f) of the Act provides that the Commission shall act as Adviser to the Federal Government on all insurance related matters.
According to him, the Commission can better achieve this task with the full cooperation of the MDAs. “It is very worrisome to the Commission that most assets and liabilities of government are never adequately and appropriately insured, which further accentuated the need for urgent measures to be put in place by the Commission to ensure that government gets value for money in the purchase of insurance by MDAs. It is the desire of NAICOM to change this narrative for good.”
NAICOM in 2009 launched the Market Development and Restructuring Initiative (MDRI) project which aimed at creation of awareness on compulsory insurance products, education of the public on the long-term benefits of insurance to policyholders and the economy at large, among others.
“While NAICOM bore the responsibility of disseminating key messaging on the benefits of compulsory insurance, we relied on Government Ministries, Departments and Agencies to help domesticate the Initiative in their respective offices and perhaps, serve as the primary vehicles for enforcement of compulsory insurances in their various MDAs, Thomas said.
“As follow-up to the success of previous nationwide awareness campaigns for compulsory insurance, NAICOM is moving the bar a notch higher. Therefore, this Sensitization Workshop is aimed at equipping insurance desk officers with the necessary tools to ensure that all MDAs have adequate insurance coverage for all government assets and liabilities to curb wastage occasioned by losses of uninsured assets.”
“Building the capacity of insurance desk officers, enthroning transparency and accountability to ensure that government gets value for money in the purchase of insurance thus taking us all a step further in contributing effectively to the economic growth and development of Nigeria is an ongoing project of the Commission.”
