BY NKECHI NAECHE-ESEZOBOR--The National Insurance Commission (NAICOM) on Tuesday reiterated its plan to further grow the Nigerian insurance industry by collaborating with state governments in the enforcement of all compulsory insurances in the State.
The Commissioner For Insurance, NAICOM, Sunday Thomas, disclosed this, when he led delegations of the commission to visit the Executive Governor of Ekiti State, Dr. John Kayode Fayemi who also doubles as Chairman of the Nigerian Governors’ Forum said that the Commission is working to ensure the success and full enforcement of all Compulsory insurances across the country.
“We are visiting you to seek your support and collaboration in the enforcement of the various compulsory insurance plans in your state.
“We believe the collaboration will bring several opportunities that will be of benefit to the state and the insurance industry when it is consummated.
According to him 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.
“We have therefore noted the necessity to plant “Insurance” and “People” at the center of any equation that tends to create, enhance, sustain and manage growth and development in any economy.
“As a people, human activities have associated risks and in spite of every precautionary measure to avoid the occurrence of losses or damages, the unexpected still occur. In consequence of the losses the victims are prone to sufferings which in many cases may lead to total impoverishment of a large proportion of those affected.
He explained that to ameliorate the situation of victims, laws have been put in place for an arrangement that will ensure that victims and especially third parties are adequately compensated.
He said that the objectives of protecting third parties and relieving the government of the avoidable burden of compensation from the meager wallet of the government led to the enactment of various laws on compulsory insurance products.
“Over the years, the Commission has embarked on series of programs aimed at a nationwide massive public enlightenment with respect to compliance with the laws on compulsory insurances.
He also listed some of the benefits of the collaboration with State Government, such as Financial Compensation to the families of insured citizens who may become victims of a disaster through loss of their properties or become disabled in event of occurrence of insured accidents/disasters, etc;
On group life insurance policy, he said the policy gives hope to the workforce who will be ready to go extra mile in carrying out assign duties knowing fully well that the employer has made provision for the dependant in event of the unexpected.
He explained further that the Compulsory insurances also provides employment opportunities for citizens of the State and provision of grants and Fire-Fighting Equipment for the States’ Fire Services by NAICOM from the Fire Fund as stipulated in the Insurance Act 2003.
He noted that the Compulsory policies also made provision for reduction in the government expenditure in event of disaster that may affect the citizens of the State by shifting the burden to the risk-bearers (Insurance Companies).
Also, Free Insurance and Risk Management Education and Enlightenment programme for the citizens of the State; and
creation of additional source of internally generated revenue (IGR) for State Government in collaboration with your relevant Ministries and Agencies.
Responding governor Fayemi’s assured the commissioner that the state is committed to enforcement of insurance and will continue to work with the commission to achieve the objectives which the Compulsory insurance products was set out to achieve.
“Be rest assured that we will work with you and we may need to invite you to meet with the 36 state governors to apprise them of your initiatives.
“We have taken note of the benefits inherent in these compulsory insurances and we are always desirous to collaborate.
He urged the insurance sector to be flexible in creating new products that are more aligned to our environment.
Some of the Compulsory insurance made mandatory by law are:All Buildings under construction that are more than two (2) floors (Builders Liability); all Public Buildings including Schools, Offices, Hotels, hospitals, Markets (Occupiers Liability)etc;; Group Life Insurance for all Employees of both Public and Private Sectors; Professional Indemnity for all Medical Practitioners and
Third Party Motor Vehicle Insurance in respect of death, injury or damage to
the property of third parties.