Patience Saghana

Landlords in the country are in for a shocker if they think they can escape compulsory insurance of building and building under constructions as they have less than five months from now to insure their buildings. This is in view of the March 2011 deadline for execution of penalties against any defaulters of that session of Insurance Act,

Section 64 and 65 of the Insurance Act, 2003 make provisions for the compulsory insurance of building and building under construction. Mallam Adamu Barlanti, Coordinator of Insurance Market Development and Research Initiative (MDRI) disclosed this to newsmen after the national Insurance Commission (NAICOM)’s road show in Lagos recently.

Barlanti said the sensitisation programme was necessary “because Nigerians deserve to be well informed”. “Ignorance will not be an excuse for defaulters when the scheme becomes fully operational,” he added. Barlanti said that similar sensitisation programme had taken his team to Lagos, Ogun and states in the north western part of the country, adding that it would be taken to all parts of Nigeria.

It will be recalled that the Federal Government has set aside N 14 billion to finance its compulsory insurance policies, the Commissioner for Insurance, Mr. Fola Daniel said. For the occupier’s liability policy, Section 65 of the Insurance Act, 2003, states that all completed and occupied building in Nigeria must have insurance cover for third party users.

The Motor (Vehicles Third Party Insurance) Act of 1945 makes it compulsory for all vehicle owners to obtain a minimum of a third party insurance cover. Section 68 of the Insurance Act, 2003 reinforced this provision. Part of the objectives of the initiative is to increase the industry‘s gross premium from N 164.5 billion in 2008 to N 1.1 trillion by 2012.

It is also meant to create about 250,000 new jobs in the sector, increase insurance contribution to the Gross Domestic Product from the current 0.72 per cent to over three per cent, and increase insurance premium per capita from the current N 1,200 to N 7,500 by 2012. According to him, with the MDRI project, Naicom is also bridging the knowledge gap of the young insurance practitioners and engaging in consumer education and protection activities.