LSunday Thomas, NAICOM Boss
BY NKECHI NAECHE-ESEZOBOR–The National Insurance Commission ( NAICOM) has appluded the Kano State Government for the swift approval of the commission’s regional office and domestication of compulsory insurance laws in the State.
The commission also commended the state government for setting up of a joint committee on the implementation of the compulsory insurances in the state.
The Commissioner for insurance Mr. Sunday Olorundare Thomas, gave the commendation when it visited the state governor to mark the sensitisation programme for top functionaries in Kano, yesterday thanked him for approving the request that was made to him in October, 2021.
He also assured that the introduction of Islamic insurance (Takaful) and Microinsurance for small businesses would enhance the insurance sector.
He further called on the need for the state government and residents to embrace the culture of Insurance.
He urged the state to set the pace for the northern part of the country to embrace insurance especially with the introduction of Takaful Insurance (otherwise known as Islamic Insurance) as an alternative to the conventional insurance to cater for sentiments of religion and tradition.
“The Commission is monitoring closely MSMEs in the state after the sensitisation workshop in Kano and the interest generated proved that the state is about to explode as another insurance hub in the country,” Thomas said.
” We must let every one around us know that insurance is something you buy when you seem not to need it because it will be too late to buy when the unforeseen occurs and you may regret not buying it.
“It also imperative for the government to always factor insurance whenever it is considering disbursement of funds either to farmers or traders in its poverty alleviation programs etc. it is only with insurance that the government can guarantee business sustainability and revolving of funds for the future thus providing a safety net for the NMSMEs against unforeseen circumstances while securing millions of jobs and wealth creation.”
He added that “the implementation of motor vehicle 3rd 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. And it is expected to change the narratives by moving Kano State from its 11th position in the Gross Premium ranking to be among the first three (3) States in the federation.”
He said “third party motor insurance, insurance for building under construction that are more than two floors; professional indemnity for all medical practitioners and hospitals; and group life insurance cover by employers for employees where there are more than 3 person, annuity for retirees as provided under the Pension Reform Act 2014” as some of the mandatory insurance made compulsory by law.
He said ” It is on the above premise that we knocked at the door of the Kano State government to set the pace for the northern part of the country to embrace insurance especially with the introduction of Takaful Insurance (otherwise known as Islamic Insurance) as an alternative to the conventional insurance to cater for sentiments of religion and tradition.”
According to him Kano State is a commercial centre with huge population and business potential, the adoption and enforcement of the compulsory insurances will no doubt have a multiplier effect on insurance premium, employment opportunities, the standard of living of the people and the internally generated revenue of the state.
“I my believe that the committee will workout 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.
“I urge the Committee to also look into the recurrent fire inferno in different markets across the state which have been causing so much economic havoc on our 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 occurance 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.
“As stated during my last visit to the His Excellency, the Governor of Kano State that going by the population statistics of Kano state it is obvious that the State is a critical stakeholder in increasing insurance penetration and growth of the sector in Nigeria.
“This partnership is a golden opportunity to assist our people when they needed it most and for the financial services sector to also increase financial inclusion which is one of the cardinal thrust that has been a forefront policy of the federal government for a sustainable economic development and lifting families out of abject poverty.”
He listed opportunity for creation of additional source of internally generated revenue (IGR) for Kano State, 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).
Financial compensation to citizens who may lose their properties or become disabled in event of occurrence of insured accidents/disasters etc as some of the benefits of insurance to the government and people of Kano state.
Others are provision of assistance on Fire-Fighting Equipment for the State Fire Service, job/employment opportunities for citizens of the state, free Risk Management Education and Enlightment programs for the citizens of the state.
