Insurers seek review of laws to cover oil, gas imports
Insurance industry operators are calling for the activation of various marine insurance laws to enable them cover associated risks with refined petroleum products imported into the country.
This, insurers believe, has not be properly observed given that “The Insurance Act 2003, for instance, provides that all imports into the country must be insured with an insurance company registered in Nigeria.”
Besides that, they are calling for enforcement of the Cabotage Act 2003, review of the Insurance Act 2003 and the Nigerian Oil Industry Content Development Act 2010.
Remi Olowude, chairman, Nigerian Insurers’ Association (NIA), who made the call during a stakeholders’ meeting in Lagos was alarmed by a new plan by the Nigeria Civil Aviation Authority (NCAA) to provide insurance protection to aviation passengers and the Nuclear Agency providing cover for nuclear risks.
“The NCAA, under the Ministry of Aviation, is planning to establish insurance fund for aviation passengers’ liability.
All over the world, aviation passengers’ liability is subject to international conventions and the risks are covered by conventional insurance policies and so Nigeria cannot be an exception, Olowude said.
“Nuclear Agency wants to establish fund for nuclear damage insurance, instead of seeking conventional insurance cover for the risks which are covered in the international insurance market.”
Querying the interest of government and its agencies coming back as players in insurance sector, the NIA boss asked “The Federal Government in 2007 divested its interest in insurance business when it sold NICON and Nigeria Re, on the understanding that such concerns are better managed by the private sector. But ironically, the same Government extracted workmen’s compensation from insurance business and transferred it to NSITF as Employee Compensation Scheme.”
On government’s patronage for insurance, Olowude noted that government and its agencies have been paying lip service to the importance and benefits of insurance, without serious patronage and support.
“There is hardly sufficient budget provision for payment of insurance premium by government and its agencies. Therefore, when insurance services are patronised, payment of the premium becomes an issue, a clear negation of the provisions of the law on “No premium, No cover.”
“Some government parastatals or enterprises are funded without allocation for insurance. Many insurance policies contracted by the MDAs in the past were not renewed, thus leaving the assets exposed to risk, damage and losses without insurance protection.”
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