NAICOM Chief Pushes for Mandatory Insurance for Public Buildings
By Patience Ikpeme
In a bold statement, Mr. Sunday Thomas, Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission (NAICOM), has called upon both federal and state governments to allocate adequate funds for the insurance of public buildings and those under construction within their annual budgets.
Mr. Thomas delivered this call to action during the 12th meeting of the National Council of Lands, Housing, and Urban Development convened in Kaduna State. Notable attendees included esteemed figures such as the Honourable Minister of Housing and Urban Development, Arc. Ahmed Musa Dangiwa, Minister of State, Housing and Urban Development Abdullah Tijjani Gwarzo, and other distinguished officials from federal and state committees and agencies.
Highlighting the mandatory nature of these insurance categories as per Nigeria’s existing insurance laws, Mr. Thomas stressed their imperative compliance by all stakeholders.
Citing Section 64 of the Insurance Act 2003, Mr. Thomas emphasized the obligation for individuals, government bodies, and corporate entities involved in constructing buildings exceeding two floors to procure a builder’s liability insurance policy (building under construction) from any of NAICOM’s licensed insurers in Nigeria.
Furthermore, he underscored Section 65 of the Insurance Act 2003, which mandates the insurance of all public buildings across the country. This measure aims to safeguard innocent individuals in the event of accidents or disasters occurring within these premises.
Encouraging state governments to follow Lagos State’s lead in localizing insurance laws, Mr. Thomas outlined the numerous benefits of adhering to these mandatory insurance requirements to include: reduced government expenditure, in the event of disasters affecting citizens, shouldered burdens could be shifted to insurers (risk-bearers), thereby relieving tax payer funds from restoration obligations; employment opportunities, implementation could pave the way for job creation within states and enhanced Internally Generated Revenue (IGR) as compliant measures can contribute significantly to bolstering the revenue streams of respective states, among other advantages.
Mr. Thomas called for proactive adoption of these measures, emphasizing their potential to fortify the nation’s infrastructure resilience while concurrently fostering economic growth and stability.
