YINKA KOLAWOLE

In a bid to ensure effective implementation of the compulsory insurance scheme for public buildings, National Insurance Commission (NAICOM) and the Nigerian Institution of Estate Surveyors and Valuers (NIESV) have pledged to work together on proper valuation of properties.

The agreement was reached at a one-day seminar on “Compulsory Insurance of Public Buildings and Mandatory Asset Valuation under the Financial Reporting Act 2011,” organised by NIESV in Ada, Osun State recently.

Compulsory insurance of buildings under Section 64 of the Insurance Act 2003 stipulates – (1) No person shall cause to be constructed 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 servants, agents or consultants which may result in bodily injury or loss of life to or damage to property of any workman on the site or of any member of the Public. (2) The duty to insure under subsection (1) of this section shall arise when a building is under construction. (3) 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.

Speaking at the occasion, NIESV President, Mr. Bose Adediji, said the challenges encountered in the provision of mass housing in the country can be addressed if there is a mutual understanding of the real estate and insurance industry’s broad spectrum of professionals.

“With the real estate and insurance sectors remaining in prostate condition, little wonder therefore the country continues to encounter the challenges of mass housing problems, youth unemployment, infrastructure decay and insecurity.

“The first challenge that must be tackled is to generate a level of mutual understanding of the estate and insurance industry’s broad spectrum of professional and business landscape in a way that will shed more light into the areas of interdependency, partnership, and synergy possibilities.

In his remarks, Commissioner of Insurance, National Insurance Commission, Mr Fola Daniel who was represented by the Field Inspector, Mr Jibola Bankole, said that builders’ liability insurance policy under Section 65 of the Act made it compulsory for every public building to be insured with registered insurers against the risk of collapse, fire, earthquake storm, flood among others.

“Public building” under the section includes a tenement house, hostel, a building occupied by a tenant, lodger or licensee and any building to which members of the public have ingress and aggress for the purpose of obtaining educational or medical service, or for the purpose of recreation or transaction of business.

“Although it has been a slow beginning the Commission is not going back on enforcement, the lack of awareness is the greatest problem the industry has suffered in this regard. It is a challenge which the Commission is facing headlong. The Commission has set up enforcement teams comprising the Nigerian Police, FRSC, and FireService, Planning authorities, CORBON, NIA and NCRIB in all the 36 states of the Federation.

“Presently the Commission is working with relevant bodies to ensure that all loose ends are addressed and ensure that all relevant stakeholders are involved. The enforcement of Compulsory insurance is a collective responsibility of all stakeholders; the Commission will therefore solicit the co-operation of estate surveyors and valuers in ensuring that this new drive can be sustained. This will involve ensuring realistic and reliable valuation of public buildings and building under construction,” he stated.