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NAICOM partners States on compulsory insurance policies enforcement

By Asishana John

The Commissioner for Insurance, National Insurance Commission, Mr Sunday Thomas, has said the commission is partnering with states to ensure the enforcement of compulsory insurance policies in the country.

Thomas said this during a sensitisation programme for top functionaries in Kano State on the implementation and enforcement of compulsory insurances in the state.

In his presentation, he said, “Permit me to mention that the Insurance Act 2003 and other relevant laws of the Federal Republic of Nigeria did make the following insurances mandatory, among others: third party motor insurance in respect of all mechanically propelled vehicles that ply the public roads.

“All buildings under construction that are more than two floors; all public buildings including schools, offices, hotels, hospitals, shopping malls; professional indemnity for all medical practitioners and hospitals; and group life insurance cover by employers for employees where there are more than three persons; annuity for retirees as provided under the Pension Reform Act 2014.

“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 Thomas, the insurance partnership with Kano State is an opportunity to assist the people when they need it most.

He said, “It is also for the financial services sector to also increase financial inclusion, which is one of the cardinal thrust that had been a forefront policy of the Federal Government for a sustainable economic development and lifting families out of abject poverty.

“It is imperative for the government to always factor insurance whenever it is considering disbursement of funds, either to farmers or traders, in its poverty alleviation programmes.”

He said there was a need for the joint committee to consider the issue of collapsed buildings that had continued to be one of the problems in big and major cities.

“The state agencies that approve and monitor construction should be given mandate to look into this matter and collaborate with other agencies like the Town Planning Authority, Fire Service, Police and relevant professional associations like COREN, some of which should also be co-opted into the committee,” he added.

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