MR. Yemi Soladoye is the National Insurance Commission (NAICOM)’S consultant on Market Development and Restructuring Initiative (MDRI) which encapsulates enforcement of compulsory insurance products in the country. He spoke on what the country stands to benefit from the programme. Excerpts.

REASONS for enforcement of compulsory insurance products We are starting the enforcement of compulsory insurance products at Ibadan particularly in view of the recent flood disaster that took place in the city which ordinarily is one of the perils covered under the Occupiers Liability Insurance. So we are starting in Ibadan on purpose and we are carrying out the responsibility of the National Insurance Commission (NAICOM).

We are carrying out this episode of compulsory insurance products enforcement in nine states of the country between November and March next year and we have drawn our programmes and time table. Thereafter we will start preparation and planning for the 2012 edition from April next year.

We are going to do the enforcement in October 2012 and it is going to be nationwide. At that point we must have put in place the structure in each state so that it can take place simultaneously in all the states of the federation. Definitely it is going to be an annual event.

Cost implication

In realising the goals of the Market Development and Restructuring Initiative (MDRI) there is the enlightenment and the enforcement phases of the compulsory insurance products. What we are doing now is enforcement. Sincerely, it is gulping lots of money and it is all about logistics.

Some of the things we did not envisaged, we are meeting them on the ground now. The most important thing is that it is not about the cost, it is the success of the operation and I think to a reasonable extent that it will succeed.

Underwriters’ co-operation

It is their products. It is not even about whether they are cooperating or not. NAICOM is virtually doing it for them for their benefits. The important aspect of this enforcement drive is the involvement of government agencies like the Fire Service, Road Safety Commission, Nigerian Police and others.

Plans for marine insurance

It is stage by stage. 16 insurance products are directly and indirectly made compulsory in Nigeria and we are taking off with five. These five are very popular and they affect almost everybody. When you look at marine insurance you have to be a businessman or an importer to be affected by it. Therefore there is a limited section to which it applies, but compulsory insurance products are of general application, that is why we are showcasing them now. Stage by stage we will get there.

Fate of collapsed buildings

It is not even when a building collapses that NAICOM comes in. That building that collapsed at Maryland was a completed and occupied building. The owners have violated the provisions of the Occupiers Liability Insurance and part of this thing we are doing is that before any building collapses they will let the person know that you have the duty to do this insurance.

With or without collapsing you have violated a portion of the law. So NAICOM comes in anytime. After it must have collapsed the subject matter is already destroyed. So NAICOM comes in when the building is actually healthy. And that is what we are trying to enforce.

We are going to look at all buildings. So the way we come in is in what we are doing now. After it must have collapsed NAICOM can still ask for evidence from the owner to find out if he had a policy.

Enforcement strategy

What we did is to gather some law enforcement agencies. Going by our products we have about four of them that are related to the products and they are the Fire Service, the Federal Road Safety Corps (FRSC), the Council of Registered Builders of Nigeria (CORBON), as well as the Nigerian Police.

We have these people as the law enforcement agencies that have one statutory role to play in respect of the five compulsory insurance products. So we gathered them, mobilized them, sensitized them and told them what the project is all about.

We arranged a training programme for all of them and members of the Insurance Consumers Association of Nigeria (INSCAN). So these are the people who give them the necessary support and guidance as to the content of each of the products. After the training we divided ourselves into groups.

The people that went out to work on motor vehicles which is about 60 per cent of the exposed risks at the moment in the country met at the tool gate together with the FRSC and formed four teams. The other products were divided for the other groups and the affected teams fall under occupiers liability insurance, hospitals under NHIS, the ones for offices for the group life insurance and the ones for buildings under construction under the builders liability insurance. Each team was made up of members of INSCAN plus staff of the NAICOM.

We also made fliers to indicate the content of each of these products, the affected parties, the benefits available, the premium to be paid, everything has been made. The INSCAN members principally enlightened whoever they see as a violator.

Absence of insurers

We did not exclude them from the enforcement programme. We even anticipated this. But NAICOM wrote letters to them to say that we are enforcing in Ibadan and asked them to get their people and materials ready. What I suspect is that they were unable to decode or understand what NAICOM meant BY ‘get your people and your materials ready.’

What we expected was that underwriters would be present during the enforcement with their system whereby a law enforcement agent can arrest somebody, the person doesn’t have the required insurance policy, the agent will say to the offender, ‘go and collect it from that operator.’

I was able to talk to some of them that called me and told them what was expected of them. The reason why we made a list of insurance companies is to also show whoever is a violator, ‘you can choose anyone you like here, go and take your documents’ because don’t forget that the FRSC must have withheld his papers.