Yemisi Izuora
The National Insurance Commission (NAICOM) is looking unto state governments and other relevant government agencies to begin effective implementation and enforcement of the compulsory insurances.
The Commission is seeking cooperation of state governors and government Ministries, Agencies and Departments (MDAs) to succeed in the latest campaign.
At Abeokuta in Ogun state, the commissioner for insurance, Muhammed Kari said some governors have declared their intention to go along with the campaign.
Kari said at the conference for insurance journalists and business editors that NAICOM is meticulously mobilising resources to ensure nationwide compliance.
The six compulsory insurances include; Group life Insurance in line with the PenCom Act 2004, Employers liability in line with the Workmen’s Compensation Act 1987, Buildings under construction-section 64 of the Insurance Act 2003, Occupiers liability insurance –section 65 of the Insurance Act 2003, Motor Third party Insurance –section 68 of the Insurance Act 2003 and Health care Professional indemnity insurance-under section 45 of the NHIS Act 1999.
But since then none of these has witnessed huge patronage, while the Third party motor insurance that is receiving the most patronage is dominated by fake insurers.
At the seminar also, Ogun state governor, Ibikunle Amosun said his administration has put up a structure to help deepen insurance in the state.
Amosun, who spoke through Bimbola Ashiru, the State Commissioner of Commerce and Industry lamented the low level of insurance penetration in the country and assured his administrations readiness to partner the regulator.
He noted that insurance business thrives on integrity and that operators must ensure that integrity becomes their watch word.
The governor urged the NAICOM to ensure that insurance companies live up to their responsibilities, adding that failure to thoroughly supervise these entities would be inimical to the public.
He also tasked the commission to improve its supervision to ensure that insurers do the needful in terms of adherence to all provisions in insurance guidelines.
He further charged NAICOM officers in charge of supervision of underwriting firms not to compromise as defaulting firms will always want lure the officers in a bid to cover their misdeeds by offering gifts or other attractive incentives.
Kari said the agency is currently persuading state governments across the nation on the need for compliance with compulsory insurances adding that compliance and enforcement of the compulsory insurances are key to promoting insurance adoption, acceptance and profitability.
According to him, “We have taken the campaign to state governments to see how we can enforce compulsory insurances. Doing this at the state level will open up several opportunities that will be of benefit to the states as well as the insurance industry.”
He noted that discussions are already going on with some state governments on the need to adopt compulsory insurances, of which Ogun State is part of, adding that the commission will extend such crusade to other states of the federation, as this would ensure that the motive of the MDRI is achieved.
Our motive is to ensure that all the 36 states, including the Federal Capital Territory (FCT) comply with these insurances, he stressed.
Kari added that the commission is equally discussing with insurance market operators, to see how the industry can be expanded using other additional channels to sell insurance products and services, noting that all stakeholders are seriously working to deepen insurance market, in a bid to contribute more to economic growth of the country.
kari told participants at the seminar that the agency is taking giant steps to communicate innovations, policies regarding insurance to consumers, stakeholders and government for better understanding of insurance.
He said operators should also understand that the industry is highly regulated and they show observe all laws.
Coming to compulsory insurances, the CFI insists that all public assets should be captured and protected under the insurance law and that government ministries, agencies and departments must obey.
Kari said, he and his officers had earlier visited the Ogun state governor, Ibikunle Amosu to discuss the compulsory insurances and seek his collaboration for their enforcement in the state.
According to him, the enforcement will lead to protection of public assets, job creation and enhanced contribution of the industry to the national economy.
The CFI assured that the compulsory insurances ‘MUST’ be enforced in all 36 states of the federation as well as the Federal Capital territory.
Going further, kari said all MDAs have been asked to list all insurable assets, and to ensure effective implementation, the Commission is to establish insurance desk in all MDAs to advice government properly.
The NAICOM is also seeking state governments collaboration to establish branches anticipating to open 12 branches before end of the year.