• Tuesday, March 05, 2024
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NAICOM to enforce compulsory insurance cover scheme in South-East

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The National Insurance Commission (NAICOM) on Wednesday in Enugu said it would soon commence the enforcement of compulsory insurance cover for people in the South East of the country.

Cliff Chukwuani, Head, South-East Zonal Office, NAICOM, who disclosed this to the News Agency of Nigeria (NAN), said it was a way of making the people of the region to register for insurance cover.

Chukwuani said that the enforcement was part of its core mandate to ensure that Nigerians abide by its compulsory insurances as stipulated under Insurance Act 2003.

He explained that the compulsory insurances were those made mandatory by the Nigeria law, and urged the people of the zone to obtain the insurance cover, as enforcement would commence after May.

According him, the five compulsory products are Motor third party Insurance meant to ensure the safety of third party road users, because the government made it compulsory for citizens and residents to have motor insurance before plying on public roads.

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“Others are Employer’s liability/workmen’s compensation insurance, Group life assurance, Health Care Professional Indemnity insurance, Occupiers Liability insurance or insurance of public buildings.

“They are compulsory insurances and very soon, we are going to embark on massive strict enforcement under the law, because ignorance to the law will not be an excuse,” he said.

The zonal head noted that the perception and participation of people in the region to insurance business was very low in spite of its enormous benefits.

He said that NAICOM Enugu office was the only one in the South East, but added that plans were underway to open offices in other states within the region.

“It is my desire to unleash something for them to know the value of insurance companies; it will not cost them much to cover their life, property and businesses,” he said.

Chukwuani, while further emphasising the need to create massive awareness about the insurance business in the region, noted that the beauty of insurance cover was that when risk occurs the person would be placed back to his/her former position prior to the loss through indemnity.

“Aside your business, you can insure your building against fire, storm and flood. Last year almost all parts of the nation were flooded with billions of naira loss, imagine if they were insured, people won’t cry,” he noted.