NAICOM Tasks State Governments on Implementation of Compulsory Insurance

Ebere Nwoji

The National Insurance Commission (NAICOM) has urged state governments to support the implementation of compulsory insurance nationwide adding that it would reduce the burden of negative occurrences like fire outbreak that affects major markets in the country.

NAICOM stated this at the sensitisation workshop it organised for top government officers in Kastina, the Katsina state capital.

The Commissioner for Insurance, Sunday Olorundare Thomas while addressing the government workers noted that the cardinal objective of insurance is to protect people against such natural disasters. 

“We cannot in some cases, stop it from happening but we can pre-empt and minimise its impact. Having the markets and goods insured will ensure stability and comfort for the people and also save the government some cost that ordinarily would have gone into compensating traders,” he said.

According to him, during the Commission’s visit to Governor Aminu Bello Masari, the CFI did mention that going by the population of farmers in Katsina state, it is obvious that the state was a critical stakeholder in increasing insurance penetration and growth of the sector by ensuring that farmers are adequately protected. 

Represented by the Head, Corporate Communications and Market Development, he said partnership with the Commission would be a golden opportunity to assist Katsina state peasant farmers, traders and civil servants when they need it most and for the financial services sector to also increase financial inclusion which is one of the cardinal thrusts that has been a forefront policy of the federal government for a sustainable economic development and lifting families out of abject poverty. 

“The inherent benefits to the people and government of Katsina state were well articulated during the visit of management of NAICOM to the Governor, but let me add that with the introduction of Islamic insurance (Takaful) and Microtakaful for small businesses, Katsina state will not be let down by the insurance industry, we indeed need each other to grow. Having Takaful Insurance as an alternative to conventional insurance makes it more beneficial that whatever you contribute is not lost at the end of the year”, he said.