By Sola Alabadan
The Nigerian Insurers Association (NIA) has urged the state governments in the country to domesticate the insurance covers made compulsory by law, just as Lagos State has done.
The Chairman of NIA, Ganiyu Musa, who gave this charge while addressing journalists in Lagos on Tuesday, stated that the association is collaborating with the Lagos State Safety Commission (LSC), Nigerian Council of Registered Insurance Brokers (NCRIB) and Courteville on the Implementation, enforcement and validation of genuine compulsory Occupiers Liability Insurance made mandatory by Law for all public buildings through Nigerian Insurance Industry Database (NIID) Verification Platform.
He informed that the exercise will be launched on April 28, while enforcement will commence in the month of May.
Similarly, the association is working with Lagos State government in the enforcement and validation of genuine compulsory third Party insurance through Automatic luNumber Plate Recognihtion (ANPR) device of VIS through NIID Verification Platform.
Besides, the NIA is also in discussion with Lagos State Building Control Agency (LASBCA) with a view to using the NIID Verification Platform for enforcement, verification, and validation of genuine compulsory Buildings Under Construction Insurances made mandatory by the Insurance Act 2003 (SECTION 64), and Lagos State Urban and Regional Planning and Development (Amendment) Law 2019 (Lagos State Urban and Regional Planning and Development Law, CAP U2 Lagos State Building Control Agency Regulations, 2019).
In fulfilment of their obligations to policy, the NIA chairman further stated that insurance companies have paid over N11 billion claims to insureds that suffered losses from the Endsars riots in 2020, assuring that “The Association will continue to emphasise the need for insurance companies to pay all genuine insurance claims and will not hesitate to sanction erring member companies.”
For the year 2020, the Gross Premium Written by insurance firms in the country stood at about N508 billion, while claims paid by member companies amounted to about N224 billion which is 44 percent of the total industry premium, Musa added.
In a related development, the NIA boss said discussion is ongoing between the Association, NAICOM, Nigerian Shippers Council, Project IT Vendor-BrandOne and all other stakeholders in the maritime value chain, including Shippers/ Importer, Clearing Agents, Track Owners, Guild of Marine Surveyors, PRAN and Tracking Companies, on provision of cover for containers.
He explained “This will be a risk management substitute for container deposits being made by the importer to the shipping companies thereby eliminating capital flight from the country.”
Additionally, the Association with the help of her team of actuaries is presently discussing with NEXIM Bank, MNK Re Limited (Broker at LLOYD’S), PRAN, and the Guild of Marine Surveyors, view to developing cover for Export Credit Guarantee Insurance and Political Risks for the banks and exporters.
