Insurance regulator, the National Insurance Commission (NAICOM) is sealing partnerships that will enable unlock the potential inherent in the different compulsory insurances under the law.
Compulsory insurances, if achieved have the capacity to protect the Nigerian public’s who will be exposed to risks of the activities of motorists, owners of buildings, building contractors, death in service, medical personnel, among other professionals involved in economic activities.
The five compulsory insurances under the law includes: Group Life Insurance in line with the Pension Reform Act 2004; Buildings Under Construction-section 64 of the Insurance Act 2003; Occupiers Liability Insurance –section 65 of the Insurance Act 2003; Motor Third Party Insurance –section 68 of the Insurance Act 2003; and Health Care Professional Indemnity Insurance- section 45 of the NHIS Act 1999
With these compulsory insurances, government wants to ensure that risk that could pull individuals down and make them economically impotent are taken over by insurers, whose expertise is to provide cover and pay compensations.
Accordingly, the benefiting individuals are protected from going back to poverty as result of loss of assets or property, and most importantly are more positioned to contribute their own quota to the overall economic growth of the society, which when pulled together makes the country’s economy better.
Compulsory insurances also present a growth opportunity for the nation’s insurance industry to contribute reasonably to GDP. This will enable increase industry penetration and premium, which currently stands about 0.4 percent and N490 billion as at the end of 2020 respectively.
Board and Management of NAICOM during a courtesy Minister to the FCT, Mohammed Musa Bello on enforcement of compulsory insurances in the FCT, got the ministers nod who promised full support towards enforcement of compulsory insurances in the FCT.
The Minister however requested NAICOM to provide details of agencies under his ministry that are complying with the requirements of compulsory insurance, while it was also agreed that there will be a joint enforcement committee comprising relevant departments of the ministry, NAICOM and other security agencies.
The Commissioner for Insurance Sunday Thomas said NAICOM is elated with the support and assurances from the Minister and promised to provide the information requested as quickly as possible.
NAICOM and the Federal Fire Service in a similar meeting had also resolved to commence the enforcement of compulsory public building liability insurances in earnest across the country. This was part of the resolution at the end of a meeting between both agencies at NAICOM Head office in Abuja.
Meanwhile, during the courtesy visit to Fayemi in September 2020, NAICOM used the occasion to seek collaboration with the State government to ensure domestication of compulsory insurances in various States just as he called on Fayemi to pass the message across to other state Governors.
He noted that the Financial Services Industry is central to the growth and sustainable development of any nation and state because of its direct impact on access to finance, catalyst to improved income, poverty reduction and stability in the financial system, stressing that as a subset of the Financial Services Industry, Insurance industry is a pivot to guarantee the sustainability of growth and development of the State and its people.
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