Home Insurance Digest NAICOM seeks Gombe’ support on compulsory insurance

NAICOM seeks Gombe’ support on compulsory insurance

The  National Insurance Commission (NAICOM) is seeking the support of  Gombe State on Compulsory insurance  in its drive to woo state governments into advancing the course of insurance penetration in the country, the National Insurance Commission, NAICOM, has sought the support and collaboration of Gombe State government in the implementation of the Compulsory insurances.The appeal was made recently by the Commissioner for Insurance, CFI, Alhaji Mohammed Kari, during the Commission’s courtesy visit to the Governor of the state,  Alhaji Ibrahim Hassan Dankwambo, in his office in Gombe, the state capital.
The Compulsory Insurances currently canvassed for by the Commission include Motor Vehicle (Third Party) Liability Insurance, Builders Liability Insurance (Buildings under construction), Occupiers Liability Insurance on Public Building, Healthcare Professional Liability Insurance, Group Life Insurance.
He also demanded that the state should domesticate insurance laws  in accordance with the Insurance Act, adding that the implementation of the compulsory insurance in the state could  also serve as a veritable source of Internally Generated Revenue, IGR, for the state aside premium generation for the underwriting industry.
“We are here to seek your support and collaboration in the implementation and enforcement of these compulsory insurance products across Gombe State. It is our intention to establish a mutually-beneficial relationship with the state. I say this with confidence that while the collaboration will result in increased insurance penetration and written premium income for the industry, it will also create another veritable source of Internally Generated Revenue (IGR) for the State Government”.
“We are not unmindful of the fact that the laws establishing these products are federal laws but they can easily be domesticated by the States and enforced within their respective boundaries. We, therefore, would want to appeal to the Gombe State Government to incept the process of domesticating these laws if it has not already done that, especially in respect of buildings under construction and public building insurances for easy enforcement”.
According to him, the proposed collaboration would  stem the proliferation of fake insurances and ensure that people enjoy the benefits inherent in the consumption of insurance Our proposed collaboration will hopefully stem the proliferation of fake insurances in the state and ensure the people enjoy the benefits inherent in the consumption of genuine insurance products.
Kari lamented what he described  as the apathy to insurance by various government and their Agencies at all levels, saying that the Commission has discovered that most governments fail to insure their assets and property even when funds are provided in the budget for it.
This, he explained, has become something of great concern to NAICOM as he solicited for the support and understanding of His Excellency in ensuring that the government of Gombe State provides adequate insurance for its assets and property.
Kari added that the agency has established a dedicated committee to assist various governments in insuring their assets and property accordingly, assuring that the committee would be ready to work with the state government once His Excellency gives his approval.
The CFI further explain that insurance sector in Nigeria has under gone many reforms which have significantly changed the face of insurance in the country and has also attracted significant Foreign Direct Investment in the sector.
He disclosed that no fewer than 10  companies have one form of foreign investment or the other with many more still waiting to come in, the development, he said, has brought about efficiency, prompt payment of claims and healthy competition amongst operators.
The NAICOM chief noted that with an estimated population of over 170 million people and given the present level of insurance penetration in Nigeria, the potential of the market is yet to be fully explored.
The visit was meant to intimate the government of the state on the arrival of the Management team of NAICOM and as well, senior finance/Insurance Correspondents of  major Newspapers, Television and Radio stations from Abuja and Lagos respectively who converged in the state capital for a seminar organized by the NAICOM.
The Commission’s delegation led by the CFI was however, received by the Deputy Governor on behalf of his boss who was unavoidably absent from the state for official assignment.

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