Federal and State governments must make provisions in their annual budgets for compulsory insurance cover for public buildings and other assets under construction, the insurance sector regulator, the National Insurance Commission (NAICOM), has said.
The Commissioner For Insurance and Chief Executive Officer of NAICOM, Sunday Thomas, said these categories of insurance should be made compulsory by extant insurance laws for all to comply with.
The NAICOM Commissioner, said Section 64 of the Insurance Act 2003 made it mandatory for individuals, governments and corporate organisations undertaking the construction of any building above two floors to procure a builder’s liability insurance policy (building under construction) from any of the NAICOM’ licensed Insurer in the country.
Also, he said Section 65 of the Insurance Act 2003 also made it compulsory for all public buildings in the country to be insured, adding that this was to protect innocent victims in the events of accidents and other disasters that may occur while they were within such premises.
Thomas spoke on Friday at the 12th meeting of the National Council of Lands, Housing and Urban Development in Kaduna State.
Participants at the session include the Minister of Housing and Urban Development, Ahmed Musa Dangiwa; Minister of State, Housing and Urban Development, Abdullah Tijjani Gwarzo; Chairman, Senate Committee on Housing and Urban Development, Aminu Tambuwal; Chairman, House Committee on Housing and Habitat,Balele Aminu and Chairman, House of Representatives Committee on Urban Development and Regional Planning, Abiante Awaji, The Permamnent Secretary, Federal Minstry 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.
Urging the various state governments to emulate the Lagos State government by domesticating the insurance laws in their respective states, Thomas listed some of the benefits from compliance with these compulsory insurances to the Federal and State Governments to include reduction in the Federal and State Government expenditure in event of disaster that may affect citizens by shifting the burden to the risk-bearers (Insurance Companies), as restoration would not be settled from tax payer’s money.
Other benefits include creation of employment opportunities for citizens of the States, LGCs from and creation of opportunity for enhancing the Internally Generated Revenue (IGR) of the respective states, amongst others.