• Saturday, February 24, 2024
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NAICOM urges FG, states to provide for building insurance in budgets

NAICOM urges FG, states to provide for building insurance in budgets

Sunday Thomas, commissioner for Insurance/CEO of the National Insurance Commission (NAICOM) has urged federal and state governments to make provisions for insurance of public buildings and buildings under construction in their respective annual budgets.

Thomas, who spoke at the 12th meeting of the National Council of Lands, Housing and Urban Development held in Kaduna State, said these categories of insurance were made compulsory by extant insurance laws in Nigeria and, thus, must be complied with by all.

According to him, Section 64 of the Insurance Act 2003 makes it mandatory for individuals, governments and corporate organisations that undertake the construction of any building above two (2) floors to procure a builder’s liability insurance policy (building under construction) from any of the NAICOM’ licensed insurers in Nigeria.

Read also: NAICOM should set digitalisation benchmark to drive insurance – Onifade

Speaking further, he said Section 65 of the Insurance Act 2003 also makes it compulsory for all public buildings in the country to be insured. This is to protect innocent victims in the events of accidents and other disasters that may occur while they are within such premises.

Thomas urged the various state governments to emulate the Lagos State government by domesticating the insurance laws in their respective states.

He listed the benefits of compliance with these compulsory insurances to include a reduction in the federal and state expenditure in the event of a disaster, by shifting the burden to the risk-bearers (insurance firms), hence restoration would not be settled from tax payer’s money

Others are the creation of employment opportunities for citizens and the boosting of internally generated revenue (IGR) of states, among others.