By Patience Saghana
39 insurance companies on the Nigerian National Petroleum Corporation (NNPC) gave said that terrorism is not covered in the country therefore the federal government may continue to repair or replace damaged oil facilities in the country arising from attack by Niger Delta militants as
A â€˜terrorism insurance coverÂ´ is not still present in the country, say experts. â€œUnlike US and UK , we donâ€™t have any insurance cover against â€˜terroristÂ´ acts. â€œAfter 9/11, most companies refused to give cover against acts of terrorism.
â€œThese are more of terroristsâ€™ attacks and they are exclusions from standard covers except where the clients decide to buy them back which may not have been possible in the Nigerian case considering that such attacks are now predictable. The commonly accepted meaning of the word terrorism is any use of terror in the form of violence or threats meant to coerce an individual, group, or entity to act in a manner in which any person or group could not otherwise lawfully force them to act.
The definition further clarifies that these acts appear to be intended to intimidate or coerce civilians â€“ collectively – or to intimidate or coerce changes in governmental policy or government conduct through the use of mass destruction, assassination, or kidnapping. 39 countries around the world have given their support to insurance industry on terrorism insurance
One of the insurersâ€™ ofÂ the NNPC-CIP account who pleaded anonymity said Government supports for terrorism risk insurance are growing globally, although some countries including Nigeria are not providing backing for it. He said, â€œSince the attacks of Sept. 11, 2001, countries have seen a marked increase in government involvement in the global terror insurance market, with a number of them developing and refining comprehensive programs for terror coverage and terror pools. As the threat of terrorism evolves, the marketplace continues to find new ways to meet itâ€
He cited that, â€œIn the United States terrorism coverage is being offered through the federal government. It is also being addressed at the state level, with 14 states allowing terrorism exclusions to be added to the â€œ1943 New York Standard Fire Policyâ€ (SFP) since Sept. 11, 2001â€.
1â€4 states have allowed terrorism exclusions to be added to the SFP since Sept. 11, 2001: Arizona, Connecticut, Idaho, Louisiana, Michigan, Minnesota, Nebraska, New Hampshire, North Dakota, New Jersey, Oklahoma, Pennsylvania, Rhode Island and Virginiaâ€. According to Vanguard source, â€œTerrorism which has been around for a while now cannot be separated from militancy although itâ€™s been defined or described differently throughout the years. Today, it amounts to bullying, only on a grand scale, because these bullies have powerful weapons and fighters who embrace death as martyrdom. There is nothing more dangerous than a terrorist who believes that he has nothing to loseâ€.
A number of countries have been active in implementing terror insurance schemes, including Austria , Belgium , France , Germany , the Netherlands and the United Kingdom . Though each pool features a different structure and level of government involvement, these nations have been among the most active in addressing terror coverage
NNPC insurance premium for this year stands at US$42,425,916.80.Â Of this amount, the local market is retaining 48 per cent amounting US$20,516,569.65 under the Nigerian local content policy which a total of 39 insurance companies licensed by the National Insurance Commission (NAICOM)
Attack on oil companies and facilities started in 2005 by the Movement for the Emancipation of the Niger Delta (MEND), knocking out more than a quarter of Nigeria â€˜s oil output then around 2.4 million bpd in a matter of weeks.
But it has largely failed to carry out such spectacular attacks since then, although the latest campaign has nibbled further at production levels in a country that relies on oil for around 90 percent of its foreign earnings. An attack on Agip (ENI) in Bayelsa state halted production ofÂ about 33,000 barrels of oil and 2 million cubic metres of gas per day whilst Shell was also attacked on Shell halted production of Trans Ramos pipeline at Aghoro-2 community in Bayelsa.
Chevron (CVX) shut down its operations around Delta state after MENDâ€™s first attack in its latest campaign on May 24, halting around 100,000 barrels per day (bpd). MEND says it is fighting against the militarisation of the Niger Delta and for a fairer share of the wealth for local villagers. But the leaders of armed gangs it works with have grown rich from a lucrative trade in stolen oil and from ransoms paid for hundreds of oil workers kidnapped in recent years. MENDâ€™s attacks on oil targets across the southern Niger Delta have already slashed output from Africa â€˜s biggest crude exporter and contributed to the worldwide rise in prices of petroleum products.