The National Insurance Commission (NAICOM) has called on federal and state governments to make adequate provisions for the insurance of public buildings and buildings under construction in their yearly budgets.
The Commissioner for Insurance, Sunday Thomas, made the call at the 12th edition of the National Council of Lands, Housing and Urban Development forum, held in Kaduna State at the weekend, saying such categories of insurance are made compulsory by extant insurance laws in Nigeria and, thus, must be complied with at all levels.
According to Thomas, Section 64 of the Insurance Act 2003 makes it obligatory for individuals, governments, as well as corporate organisations that undertaking the construction of any building above two (2) floors, to procure a builder’s liability insurance policy (building under construction) from any of the licensed insurance companies in the country.
The commissioner said Section 65 of the Insurance Act 2003 also makes it compulsory for all public buildings in Nigeria to be insured. This is to protect innocent Nigerians in the events of accidents and other disasters that may occur while they are within such premises.
However, urged state governments that do not have such categories of policies to emulate the Lagos State and others by domesticating the insurance laws in their respective states.
He also highlighted some of the benefits of compliance with these compulsory insurances to the Federal and State Governments including a reduction in the Federal and State Government expenditure in the event of a disaster that may affect citizens by shifting the burden to the risk-bearers (Insurance Companies), hence restoration would not be settled from tax payer’s money
Others, he said, are the creation of employment opportunities for citizens of the State and the opportunity for enhancing the Internally Generated Revenue (IGR) of the respective states amongst others.
In the industry, at different forums, it has been a major concern among players, the poor patronage of governments in embracing insurance products, and how they can help the sector in the area of enforcement of the insurance laws in the country.
According to them, the federal government itself should be at the vanguard of this by getting its law enforcement agents to not only enforce the purchase of the policy but also arrest and deal decisively with owners of collapsed buildings in different parts of the country, especially if such buildings lack insurance cover.
Insurance industry analysts said the government needs to stand up on the enforcement of compulsory builders insurance because of the incessant collapse of a building in the country.
They said a situation where a building collapsed, killing scores of people, and law enforcement agencies like the police waited for a whole day before going there, thereby allowing the owner to escape will create room for a carefree attitude among Nigerians regarding patronage of the policy.
They also said the section of the Insurance Act 2003 that talks about supporting fire service command with part of insurers’ premium should be implemented to the end for enabling fire service men to handle fire outbreaks in homes and markets.
Among the participants at the session include the Honourable Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa; Minister of State, Housing and Urban Development, Abdullah Tijjani Gwarzo; Chairman, Senate Committee on Housing and Urban Development, Sen. Aminu Tambuwal; Chairman, House Committee on Housing and Habitat, Hon. Balele Aminu and Chairman, House Committee on Urban Development and Regional Planning, Hon. Abiante Awaji, The Permanent Secretary, Federal Ministry of Works and Housing, Mahmuda Mamman; Commissioners, Permanent Secretaries, Directors of Lands and Housing from the 36 States of the federation; Managing Director of Federal Mortgage Bank of Nigeria, Nigeria Mortgage Refinancing Company, Shelter Afrique, etc.
