James Emejo in Abuja
The Commissioner For Insurance/Chief Executive, National Insurance Commission (NAICOM), Mr. Sunday Thomas, has urged the federal and state governments to begin to make adequate provisions for insurance of public buildings and buildings under construction in their respective annual budgets.
He said these categories of insurance are made compulsory by extant insurance laws in the country and as such, must be complied with by all.
Thomas, stressed that Section 64 of the Insurance Act 2003 makes it mandatory for individuals, governments and corporate organisations that undertake the construction of any building above two floors to procure a builder’s liability insurance policy (building under construction) from any of the NAICOM’ licensed Insurer in Nigeria.
He spoke at the 12th meeting of the National Council of Lands, Housing and Urban Development in Kaduna State.
He added that Section 65 of the Insurance Act 2003 also makes it compulsory for all public buildings in the country to be insured.
This, he said, was to protect innocent victims in the events of accidents and other disasters that may occur while they are within such premises.
Thomas urged the various state governments to emulate the Lagos State government by domesticating the insurance laws in their respective states.
He also listed some of the benefits from compliance with these compulsory insurances to the federal and state governments to include reduction in government expenditure in event of disaster that may affect citizens by shifting the burden to the risk-bearers insurance companies), hence restoration would not be settled from tax payer’s money; and creation of employment opportunities for citizens of the state.
He said compliance would also provide the opportunity for enhancing the Internally Generated Revenue (IGR) of the respective states among others.
Participants at the session included the Minister of Housing and Urban Development, Mr. Ahmed Musa Dangiwa; Minister of State, Housing and Urban Development, Abdullah Tijjani Gwarzo; Chairman, Senate Committee on Housing and Urban Development, Senator Aminu Tambuwal; Chairman, House Committee on Housing and Habitat, Hon. Balele Aminu and Chairman, House Committee on Urban Development and Regional Planning, Hon. Abiante Awaji.