NAICOM takes campaign for compulsory insurances to Gombe

L – R: Adamu Balanti, Director (Research, Statistics & Information Technology), National Insurance Commission (NAICOM); Commissioner for Insurance, Alhaji Muhammed Kari, and Gombe State Deputy Governor, Mr. Charles Iliya, at the Statehouse during NAICOM visit over the weekend.

The National Insurance Commission (NAICOM) has called for the support of the Gombe State Government on implementation and enforcement of five compulsory insurances in the country, especially, as the second phase of the Market Development and Restructuring Initiative (MDRI) is about to take off.

The compulsory insurances include, Motor (Third Party) Liability Insurance, Builders Liability Insurance (Buildings under construction), Occupiers Liability Insurance on Public Building, Healthcare Professional Liability Insurance and Group Life Insurance.

Speaking during a visit of the executives of NAICOM to Gombe State Governor, Alhaji Ibrahim Hassan Dankwambo, on Friday, the Commissioner for Insurance, Alhaji Muhammed Kari, said that the commission wants to establish a mutually beneficial relationship with the state in a bid to sell compulsory insurance products across the state.

Expecting that the collaboration will result in increased insurance penetration and written premium income for the industry, he added that this will also create another veritable source of Internally Generated Revenue (IGR) for the state government.

According to him, “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.”

Stating that the proposed collaboration will hopefully stem the proliferation of fake insurances in the state, he noted that it would also ensure that the people enjoy the benefits inherent in the consumption of genuine insurance products.

Most governments, he pointed out, fail to insure their assets and property even when funds are provided in the budget for it, saying this has become something of great concern to NAICOM, urging the state to assist in provides adequate insurance for its assets and property.

“We have indeed established a dedicated committee in NAICOM to assist various governments in insuring their assets and property accordingly. This committee will be ready to work with your people once we receive your nod,” he stressed.

However, the Governor promised to work closely with the regulator to ensure that the five compulsory insurances are implemented in the state.

In the same vein, the Deputy Governor, Mr. Charles Iliya, who received the NAICOM team on behalf of the Governor, noted that the state cannot afford to lag behind in insurance adoption and acceptance in the country.

He also lauded the insurance regulator for its drive to deepen insurance penetration and acceptance, calling on Nigerians to subscribe to insurance, as it remains the best risk mitigation mechanism.