Commissioner for Insurance/Chief Executive, National Insurance Commission (NAICOM), Mr Sunday Thomas, has said funds disbursement by the government to farmers and traders under its poverty alleviation programme should be covered by insurance.
He said the government can guarantee business sustainability and revolving of funds for the future only with insurance.
Speaking at the retreat for members of the committee on the implementation of compulsory insurances in Kano State, he said the objective of the retreat was to equip members of the committee with requisite information and knowledge to enable them to maximise opportunities that will help grow and develop insurance culture in the state.
This, he said, would boost internally generated revenue for the state and serve as a social protection mechanism that will assist both government and citizens in the event of any disaster.
He said at the end of the deliberations, the committee will enforce in the state, third party motor insurance in respect of all mechanically propelled vehicles that ply the public roads;
Liability insurance cover in respect of all buildings under construction that are more than two floors;
Liability insurance cover in respect of all public buildings including schools, offices, hotels, hospitals, market shops, shopping malls etc.; Professional indemnity for all medical practitioners and hospitals.
Others are group life insurance covered by all employers of labour for all their employees where there are more than three persons; Annuity for retirees as provided under the Pension Reform Act 2014 as an option among others.
He said, “The above compulsory classes of insurance I believe should be adequately covered by the Committee. Beyond the compulsory classes of insurance, the committee could also look at encouraging individuals and corporate entities within the state to embrace other non-mandatory insurances either through Takaful Insurance (otherwise known as Islamic Insurance) or Microinsurance which caters for the low-income earners who constitute a larger percentage of the population and businesses.
“This will enable an all-inclusive approach to the drive for insurance uptake and will address most of the sentiments against insurance in our society. I want to assure the members of the Committee that the Commission is ready to provide all necessary support, especially in the area of publicity, knowledge gap about insurance and expertise to assist you to carry out your assignment successfully.”
He added that Kano, being one of the leading commercial nerve centres in the country with a huge population and business potentials, the adoption and enforcement of these compulsory insurances will no doubt boost insurance premium income in the country.
The NAICOM boss also said the adoption would create thousands of employment opportunities in the state, improve the standard of living of the people and increase the state’s internally generated revenue.
“As I mention in Kano during our workshop recently, working out a fashionable mechanism will ensure Kano State an enviable status of a role model to other states in the country in the area of insurance penetration, “he said.