NAICOM Expresses Worry, Says Most Public Buildings Are Not Insured

By LOVETH AZODO, Lagos

The National Insurance Commission (NAICOM ) has expressed displeasure over the low compliance of compulsory insurance of public buildings and buildings under construction above 2 floors to adequately and appropriately in the country

The Deputy Commissioner for Insurance Technical, NAICOM, Sabiu Abubakar made the disclosure at the sensitization workshop for Federal Fire Service and State Fire Service Officers on Insurance of Public Bholdings under construction above two floors Today in Abuja.

He iterated the Section 65 of the Insurance Act 2003 which stipulates that all public building shall be adequately insured and Section 64 of the Act provides that all buildings under construction above 2 floors shall be adequately insured.

According to him, the situation call for the need for urgent measures to be put in place by the Commission to ensure that these buildings are adequately insured adding that It is the desire of the commission to change this narrative for good.

It is very worrisome to the Commission that most public buildings and buildings under construction above 2 floors are never adequately and appropriately insured.

He hinted that the essence of Insurance of public buildings and buildings under construction above 2 floors is to cushion the impact and reduce the burden and liabilities that the owner / government would have to bear in likely occurrences of catastrophic events such as natural disasters, fire, accidents, building collapse, injuries or death to third parties, etc, thereby saving the government money which can be channeled towards augmenting the needs of the citizenry, providing infrastructure, and creating employment, among others.

“As follow-up to the success of previous nationwide awareness campaigns for compulsory insurance, NAICOM is moving the bar a notch higher. Therefore, this Sensitization Workshop is aimed at equipping Fire Service Officers with the necessary knowledge to properly enforce the insurance of public buildings and buildings under construction above 2 floors,” he said.

Also speaking, the Comptroller-General of the Federal Fire Service who was represented by Debbie Windele, noted that the partnership between the Fire Service, and NAICOM is absolutely necessary as section 65 of the Insurance Act 2003 only provides for all public buildings in the federation to be insured.

However, she said that in sub-section 4, it provides that 0.25 per cent of the net premium received by every direct insurer on policies issued from public buildings must be paid quarterly by every insurer into the Fire Services Maintenance Fund.

She explained that the proceeds collated into this Fund by the Commission would be disbursed to the Fire Service for the purpose of providing grant or equipment.

According to her, the existence of this Funds and the prudent utilization of same, can turn the tide in the Fire Service in achieving its mandate. “This Fund would certainly make issues of lack of equipment a story of the past in the Fire Sector in Nigeria,” she said.

She urged that both institutions work in tandem with one another and promote transparency in their dealing to realize the vision of the Federal Fire Service.

“Essentially, the purpose of this workshop is to raise awareness on this project and to serve as a brainstorming opportunity for all parties. This would enable us to strengthen this collaboration and achieve our goals” she said.