Yemisi Izuora
The Nigerian Council of Registered Insurance Brokers of Nigeria (NCRIB) has charged Federal Government to ensure that appropriate insurance policies are in place for houses at the construction stage, and for the win-win benefits the projects holds for government, allottees and their families.
The President, Shola Tinubu, while addressing the media in Lagos, said that insurance should be given its rightful place in such projects in line with Section 64 & 65 of Insurance Act 2003, which stipulates a Compulsory Insurance for ongoing construction projects.
He lauded the Federal Government’s Rent-to-Own product designed to enhance affordability by eliminating the need for down payments and other costs associated with normal mortgage loan arrangements, stressing that definitely, it will go a long way to address the housing deficit, a serious challenge that any government should tackle headlong.
“The Federal Government recently announced that N197 billion has been spent to construct 26,002 houses across the country, while 13,953 homes across the country were also renovated. As a professional body, the NCRIB wishes to laud the Federal Government’s Rent-to-Own product designed to enhance affordability by eliminating the need for down payments and other costs associated with normal mortgage loan arrangements.
“Definitely, this will go a long way to address the housing deficit, a serious challenge that any government should tackle headlong. However, the Council wishes to enjoin the Federal Government, to ensure that in embarking on this laudable feat, insurance should be given its rightful place. Section 64 & 65 of Insurance Act 2003 stipulates a Compulsory Insurance for ongoing construction projects.
“It therefore behoves the Federal Government to insist that appropriate insurance policies be in place for these houses at the construction stage, and for the win-win benefits the project holds for government, the allottees and their families,” he said.
The NCRIB boss, speaking on the 2019 elections, enjoined politician to endeavor not to overheat the polity in view of the potential negative effects of such actions on the socio-economic development of the nation. He added that thought as a professional body, brokers must stay above party politics, but are duty bound to positively impact on the political environment as it must not elude them that economy and politics are inextricably woven.
He stressed that in a bid to chart enduring pathway for the Insurance Brokers and the NCRIB as a body, the Council’s management has almost concluded the 10 year strategic plan for the Council and insurance broking, adding that the Council at its CEOs Retreat held recently in Uyo, Akwa Ibom State discussed the input of the strategic plan to allow members have a buy in.
On training, he noted that in line with the mandate of the current management of the NCRIB, it is heartening to report that the Council has sustained its tempo of training, adding that in the last quarter, the Council organised no fewer than four professional trainings, namely: Advanced Oil & Gas Training; Contemporary Regulatory Issues training; Risk Pricing, and Bidding and Evaluation and that the Council will not in any way relent on these trainings to position the members for the unfolding challenges of the profession.
He lauded the National Insurance Commission (NAICOM) over the zero draft guidelines issues to broking firms, stressing that the opportunity provided by The regulator for brokers to make input to the Zero draft Guideline, help enrich it.
“The guidelines are currently being reviewed by the Technical and Legal Committees of the NCRIB for our final input. We believe that if our suggestions and input are favorably considered, the Commission will definitely come out with a more robust and acceptable document for all stakeholders.
“Currently we are concerned that the guideline may be seeking to Tier Brokers which is not seen as required since Brokers are professional firms and not risk carriers. However we have confidence in the approach of the commission to ensure all aspects are fully discussed before decisions are made,” he added.
Tinubu said, “We believe that if our suggestions and input are favorably considered, the Commission will definitely come out with a more robust and acceptable document for all stakeholders”.
He added that the Council have set relevant Committees in motion to see extent to which this new policy thrust would affect members, as the end consumers have began to express concern as to the implications for them. Anytime the insurers market goes into flux the broking sector becomes challenged to guide clients to the best affordable security. “The NCRIB will support our members through these emerging challenges,” he said.
In the same vein, the Treasurer, NCRIB, Mrs. Ekeoma Ezeibe said the zero draft guidelines did not disrupt the business of insurance brokers.
Ezeibe said the guidelines stated that for the corporate insurance brokers who are interested in oil and gas business, their professional indemnity cover would be a minimum of N100 million, whereas for partnership insurance brokers, their cover is less than that.
She said, “The guidelines didn’t state that partnership insurance brokers cannot participate in oil and gas business, they can participate only if they beef up their professional indemnity cover to N100 million.
“The guidelines also stated that if you are a corporate insurance brokers, you must have branches in all the six geo-political zone in the country. It didn’t have that requirement for partnership insurance brokers, but then, it didn’t say if you are a partnership insurance broker, you cannot have branches in all the six geo-political zone.
“The N100 million is not for recapitalization of insurance brokers, it is for professional indemnity.”
According to Ezeibe, Professional indemnity is an insurance policy that ensure that all professionals carry or must have in order to protect llllthemselves and their practices against handling the affairs of their clients negligently.