LASG, insurance companies move to implement compulsory insurance policy to stop business failure
By Moses Adeniyi
The Lagos State Government (LASG) has commenced plans with Insurance Companies in the Country in a build up to implement the domestication of the National Insurance Commission Act (NAICOM) in the State.
The modalities are what the State Government and operators have noted are antidote against losses and failure of businesses which the prevailing poor attention to insurance have occasioned.
As part of its implementation strategies, the State Government in collaboration with Insurance Companies and a leading technological service provider has launched a Compulsory Digital Insurance (Occupiers Liability) for Lagos, tagged “Safer Lagos Insurance” where key stakeholders can digitally key into the process.
This is just as the State Government has commenced broad engagement with the major stakeholders of concern, alongside insurance companies as partners.
In a press briefing, the Director General, Lagos State Safety Commission (LSSC) Mr Lanre Mojola, said it was high time everyone took safety as a responsibility by keying into insurance packages.
According to him, the Digital Insurance Occupiers Liability which is one of the six compulsory insurances under the NAICOM Act of 2003 would provide user friendly platform for stakeholders to enjoy insurance premium at their convenience.
Mojola disclosed that the government has commenced deep engagement with several stakeholders and operators “on the need to start to implement this particular insurance,” which covers different entities for public buildings, including stakeholders as cinema operators, event centre owners, school, bakeries, restaurants, among other operators.
“Our goal as the safety commission is important, and we are almost like the guardian of safety in the State. We are there to preserve and to protect lives.
“Safety is everyone’s responsibility and we start by understanding what the challenges are. We have done evaluation across the State and we have realised that there is no better time for us (than now) to start to implement this,” he said.
According to him, it has become important for people to understand the importance of insurance to avoid the prevailing norm where the government is seen as the last resort to pay compensation for mishaps.
“What we are saying now is safety is everybody’s responsibility,” he said.
He mentioned that the Governor Babajide Sanwo-Olu led Administration through the focal THEMES agenda built around security and good governance has taken on the responsibility to ensure citizens are safe in their dealings and dwellings in the State.
“Security and good governance is the pillar that all the other pillars (of the THEMES AGENDA) lie on. So, this (Compulsory Digital Insurance)l is a subset of security and good governance, and we are here to announce to the world that the Lagos State Government would continue to step up responsibility in ensuring that everyone is protected in the State,” he said.
He explained that the Commission’s role would majorly revolve around engaging with the public, educating them, and then enforcing the policy.
Mentioning that the system is tailored towards building resilience and sustainability for businesses, Mojola said the digital platform would circumvent the possibilities of invaders and shady dealers.
The Director-General/Chief Executive Officer of Nigerian Insurers Association (NIA), Mrs. Yetunde Ilori, in her remarks, said Insurance in the Country has evolved and the need for the populace to understand the system was important.
Appreciating the Governor Babajide Sanwo-Olu led Administration for pushing forth the policy with a partnership arrangement with private operators, Ilori who described the event as historic, said the kick-off would permit a last longing project, callling for all arms to key into the system to ensure continuity.
“This is a journey that started years back and we thank God that it is seeing the light of the day and I want to say what is happening today is historical and its just a kick-off of a project that is going to last long.
“We as the insurance companies, we are going to ensure it is something that is sustained, because we have all arms of the insurance companies keying into this project.
According to her about four committees were “working with the safety commission to ensure everything is done well.”
She mentioned that the insurance system would not only ensure continuity and sustainability for businesses, but also would be helpful to security forces to ensure compliance.
Ilori argued that against perceptions of seeing the platform as a means of IGR, the system was set to boost assurance safety for all.
She maintained that the system would further cushion and eliminate sudden folding up of businesses by unforseen circumstances, arguing it is not about making business tougher and difficult, but to ensure continuity, sustainability, and doing the needful in case the unfortunate happens.
“We are taking the process of occupiers liabilities to another level. We want to sensitise everyone that this insurance is not about IGR, it’s not about what comes into the insurance industry. It’s about the safety of all.
“We have so many private companies failing untimely which is not the case in some other clime. When something suddenly happens, because many people have not imbibed the culture of insurance, the company goes down the drain. We want that to become a thing of the past,” she said.
Against arguments that Insurance Companies default in payment of claims for hazards, she said no less than N11billion has been paid by the companies for claims in respect of destructions that greeted the #ENDSARS protest.
Stating that most claims unpaid are not genuine, she implored members of the public to always engage with the right Insurance Companies, while reporting to the NIA as a self regulatory body to intervene in any case of breach.
“If indeed you have claims which have not been settled, kindly report to us, we would look into it and see the fact of the case and them we mediate,” she said.
