National Insurance Commission, NAICOM has enjoined the Federal and State government to begin to make adequate provisions for insurance of public buildings and buildings under construction in their respective annual budgets.
Speaking at the twelfth meeting of the National Council of Lands, Housing and Urban Development in Kaduna on Thursday, Commissioner for Insurance of NAICOM – Sunday Thomas affirmed that section sixty- four 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 from any of the NAICOM’ licensed Insurer in Nigeria.
The NAICOM Boss explained that these categories of insurance are made compulsory by extant insurance laws in Nigeria and, thus, must be complied with by all, adding that, this is aimed at protecting innocent victims in the events of accidents and other disasters that may occur while they are within such premises.
While urging the various State Government to emulate Lagos State government by domesticating the insurance laws in their respective States, Thomas listed some of the benefits from compliance with these compulsory insurances to the Federal and State Governments.
These include: Reduction in the Federal and State Government expenditure in event of disaster that may affect citizens by shifting the burden to the risk-bearers , and, Creation of employment opportunities for citizens of the State, Opportunity for enhancing the Internally Generated Revenue (IGR) of the respective States.
The meeting had in attendance among others, the Minister and Minister of State for Housing and Urban Development- Architect Ahmed Musa Dangiwa; and Abdullah Tijjani Gwarzo; Chairman, Senate Committee on Housing and Urban Development, Senator Aminu Tambuwal; Chairman, House Committee on Housing and Habitat, Honourable Balele Aminu, and, Managing Director of Federal Mortgage Bank of Nigeria.
