Patience Saghana
The National Insurance Commission (NAICOM) is seeking the enforcement of compulsory insurance products in the 36 States across the nation as a matter of importance just as the Lagos State government is implementing building under construction.

The six compulsory insurance products are: Employers Liability Insurance; Healthcare Professional Indemnity Insurance; Builders Liability Insurance; Occupiers Liability (Public Building) Insurance; Motor Vehicle (Third Party) Insurance and Statutory Group Life Insurance.

NAICOM seriously craved for implementation of the six compulsory insurance by the 36 States including Lagos State in order to protect the nation’s citizenry. The commission commended Governor Babatunde Raji Fashola for signing into law the Building Control Bill, which is aimed at enforcing the compulsory Builders’ Liability Insurance Policy.

Mr. Fola Daniel, Commissioner for Insurance described the governor as a model in good governance. He also sees the feat of the governor as a great accomplishment worthy of emulation.

Daniel in a message to Fashola states, “The entire Lagos populace and indeed your admirers across the nation applaud the enactment of the law to protect and reduce the incidence of loss of lives and property resulting from collapsing buildings,”

The Lagos government on April 22, 2010, made it mandatory for developers of three-storey buildings and above to provide insurance certificate as a pre-requisite for government approval.

The Insurance Commissioner stated that the compulsion is, “a reinforcement of an existing federal law, as contained in section 64(65) of the Insurance Act 2003”.

Builders Liability Insurance Act states that no person shall cause to construct any building of more than two floors without insuring with a registered insurer his liability in respect of construction risks caused by his negligence or the negligence of his servant, agents or consultants which may result in bodily injury, loss of life or damage to property of any workman on the site or of any member of the public.
It provides compensation in the event of bodily injury, death or property damage to any third party caused by action or inaction of the owner or his agent or as a result of collapse building under construction.
And those Sections of Insurance Act clearly impute sanctions “A person who contravenes subsection (1) of this section commits an offence and on conviction shall be liable to a fine of N250, 000 or imprisonment for three years or both.”
Fashola said that the involvement of insurance companies in the construction of buildings would also open avenues for more job opportunities for graduates of insurance as well as insurance firms who will in turn employ more people, adding, “By working with the private sector, building control compliance will be easier”.

Besides, Mr. Tom Imokhai, Managing Director of Standard Alliance insurance Plc commended the effort of the Lagos State Government. He said, it’s a bold step to enforce the compulsory Builders’ Liability Insurance Policy through the Building Control Bill it signed into law”.

According to him, “The law which henceforth makes it mandatory for a developer of a three-storey building and above to provide insurance certificate as a pre-requisite for government’s approval was a welcome development to the insurance sector as “it would mean good business for the general underwriting companies in the state if compliance was fully pursued.”

“We in the sector have been expecting this supportive bold move by all state governors and the Minister of the Federal Capital Territory to give bite to the efforts of the Commissioner for Insurance. With this bold move by the Lagos Government, we hope that other states and FCT would follow,” he said.

“There are a lot of such building projects going on at different sites on the Lagos and Abuja corridors in particular as well as other states of the federation. We need this sort of backing to force builders to comply with securing such appropriate building insurance covers.”