By LOVETH AZODO, Lagos
In a bid to reduce the vulnerability of Micro Small Medium Enterprises (MSMEs) to extinction by likely natural and man-made disasters to the barest minimal, the National Insurance Commission has introduced 300 MSMEs to Micro insurance and Takaful as the two insurance offerings carefully designed for affordability and inclusiveness to bring Insurance within their reach.
The Commissioner of Insurance, Mr O.S Thomas who stated this at a Insurance sensitization workshop for MSMEs in Lagos mentioned that the Commission has licensed 4 Micro Insurance companies and 4 Takaful companies to operate.
According to him, entrepreneurs who fall under this category are free to approach any of the companies for an appropriate and adequate insurance policy that meet their needs.
He said “Consequently, the Micro Insurance and Takaful are two insurance offerings carefully designed for affordability and inclusiveness to bring Insurance within the reach of one of the nations most valued contributors to the economy.”
“This will support the sector for speedy recovery when unforeseen situations occur.”
He noted that MSMEs sector is too important to be neglected as it is key to economic development of the nation and thus, must be guided and protected against failure.
Citing reports of the National Bureau of Statistics he stated “Micro, Small and Medium Enterprises (MSMEs) in Nigeria have contributed about 48% – on average – to the national Gross Domestic Product (GDP) in the last five years from a total of about 17.4 million enterprises (NBS 2019). They account for about 50% of industrial jobs and nearly 90% of activities in the manufacturing sector.”
On Claims, NIACOM Bose assured that the Commission is committed to its mandate of providing diligent oversight to the insurance sector towards ensuring prompt settlement of genuine claims when insured event occurs.
“We all witnessed the destruction of life and property during the #EndSars protest which may have killed some MSMEs and driven some persons further down the poverty line. The good thing which is our message to you today is that insurance will provide you the shock-absorber to withstand any of these unforeseen calamities when they do occur and help your reinstatement in business,” he said.
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