Insurance brokers to embark on lobbying of states in 2014

Umbrella body of insurance brokers, the Nigerian Council of Registered Insurance Brokers (NCRIB), plans to embark on lobbying of states houses of assembly to promulgate edicts that will drive public compliance with some of the insurance products made compulsory by provisions of the Insurance Act 2003.

Ayodapo Shoderu, president, NCRIB, who made this known during a chat with journalists in Lagos recently, stated that economic wastage will reduce in the country if the insuring public complies with the provisions of the law on compulsory insurance covers.

He said the spate of public building collapse and the consequential human and material losses usually recorded all over the country will reduce considerably if states’ legislature have in place laws compelling adherence to sections 64 and 65 of the Insurance Act.

Section 64(1) of the Insurance Act stipulates that “No person shall cause to be constructed any building of more than two floors without insuring with a registered insurer his liability in respect of construction risks caused by his negligence or the negligence of his servants, agents or consultants which may result in bodily injury or loss of life to or damage to property of any workman on the site or of any member of the public.” The duty to insure shall arise when a building is under construction.

Similarly, Section 65(1) of the Insurance Act provides that “Every public building shall be insured with a registered insurer against the hazards of collapse, fire, earthquake, storm and flood.

 The Act defines “Public building”, as a tenement house, hostel, a building occupied by a tenant, lodger or licensee and any building to which members of the public have ingress and aggress for the purpose of obtaining educational or medical service, or for the purpose of recreation or transaction of business.

The insurance policy shall cover the legal liabilities of an owner or occupier of premises in respect of loss of or damage to property or bodily injury or death suffered by any user of the premises and third parties.

 Although 16 insurance products are directly and indirectly made compulsory in the country, the National Insurance Commission (NAICOM) has been striving to enforce five that are very prominent and capable of generating about 55 percent of the industry premium income.