News - February 10, 2022

Kano to adopt compulsory insurance as strategy to promote foreign investment

MEDIATRACNET

To promote foreign investment in iys economy, the Kano state government says it would adopt its new found insurance culture as incentive to encourage prospective investors in its domain.

The state governor, Abudullahi Umar Ganduje, said on Thursday he was convinced that an entrenched insurance culture in the state would assure investors of the safety of their investments.

The governor was speaking in Abuja through the Secretary to the Kano State Government, Usman Alhaji, who represented him at a three-day retreat for members of the Technical Committee on implementation of Third Party Liability and other Insurances in Kano State.

Alhaji told journalists the Kano state government was exploring and promoting insurance culture in the state to, among others, encourage Foreign Direct Investment (FDI).

He said in the long run, investors would be insured as well, to give them the safety required in case of any unexpected eventuality.

The compulsory insurance policy adopted by Kano state government, he said, was a deliberate policy, since the state governmenr believes in the long run, it would be a mutual benefit to the insurance companies, the State government and the people of Kano.

He said the Kano State Government introduced the compulsory insurance policy in its quest “to make Kano a better state, develop economically and move to the next level”.

Besides, he said the policy would guarantee “the protection of the people of the state and their businesses, by ensuring they are insured and in the event of any eventuality, they can get some relief”.

The policy, he noted, would also ensure that state government raised its internally generated revenue, to continue the development od other sectors of economy as well as help government fulfil its number one obligation of protecting the life and property of its people.

“In the event of any unfortunate circumstance then we know that we will have taken the necessary steps to get relief for the families of people and of course, owners of businesses.”

The Commissioner for Insurance and Chief Executive Officer of National Insurance Commission (NAICOM), Sunday Thomas, said the steps taken by the Kano state government over insurance was a testament that insurance could indeed thrive anywhere in Nigeria.

Thomas said the objective of the retreat was to equip members of the committee with requisite information and knowledge about the policy to enable them maximize opportunities that would help grow and develop insurance culture amongst Kano state citizens.

The Commissioner ssid the Kano state insurance policy would help the state “generate more revenue and serve as social protection mechanism that would assist both government and citizens in the event of any disaster”.

The mandatory insurances that would be enforced in the state, he said, would be “the third-party motto insurance covers in respect of all mechanically propelled vehicles that ply public roads”.

“The liability insurance cover in respect of all buildings under construction that are more than two floors.

“Also, all public buildings, including schools, offices, hotels, hospitals, market shops, shopping malls, and all of that.

“Professional indemnity for all medical practitioners and hospitals in Kano state.

“Group Life Insurance for all employers of labour that employ more than three persons and annuity for retirees as provided under the pension reform act as an option.”

As one of the leading commercial nerve centres in the country, Thomas said the huge population and business potential in the state makes the adoption and enforcement of these compulsory insurances a major boost to insurance premium income in the country.

He said the policy would create thousands of employment opportunities in the state, improve standard of living of the people and increase the state’s internally generated revenue.

Beyond the compulsory classes of insurance, Thomas said the committee would be educated on the need to appreciate and exploit the benefits of insurance by encouraging individuals or corporate entities within the state to embrace other non-mandatory insurances.

“These are either through Takaful insurance, otherwise known as Islamic insurance or Micro insurance, which caters for the low-income earners who constitute larger percentage of the population and businesses.

“This will enable an all-inclusive approach to the drive for insurance uptake that will address most of the sentiments against insurance in our society,” the Commissioner said.

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