NAICOM seeks support on compulsory insurance policies

The National Insurance Commission(NAICOM) is seeking the support of Gombe State Government on implementation and enforcement of five compulsory insurance policies in the country, especially, as the second phase of the Market Development and Restructuring Initiative (MDRI) is about to take off.

The insurance policies include; Motor Vehicle (Third Party) Liability Insurance, Builders Liability Insurance (Buildings under construction), Occupiers Liability Insurance on Public Building, Healthcare Professional Liability Insurance and Group Life Insurance.

Speaking during a visit of the executives of NAICOM to the Governor of Gombe State, Alhaji Ibrahim Hassan Dankwambo on Friday, the Commissioner for Insurance, Alhaji Muhammed Kari, said the commission wants to establish a mutually beneficial relationship with the state in a bid to sell compulsory insurance products across the state.

Expecting that the collaboration will result in increased insurance penetration and written premium income for the industry, he added that this will also create another veritable source of Internally Generated Revenue (IGR) for the state government.

According to him, “We are not unmindful of the fact that the laws establishing these products are federal laws but they can easily be domesticated by the states and enforced within their respective boundaries.

“We therefore would want to appeal to the Gombe State Government to incept the process of domesticating these laws if it has not already done that, especially in respect of buildings under construction and public building insurances for easy enforcement.”

Stating that the proposed collaboration will hopefully stem the proliferation of fake insurances in the state, he noted that it would also ensure that the people enjoy the benefits inherent in the consumption of genuine insurance products.

Most governments, he pointed out, fail to insure their assets and property even when funds are provided in the budget for it, saying this has become something of great concern to NAICOM, urging the state to assist in providing adequate insurance for its assets and property.

“We have indeed established a dedicated committee in NAICOM to assist various governments in insuring their assets and property accordingly. This committee will be ready to work with your people once we receive your nod,” he stressed.

However, the Governor promised to work closely with the regulator to ensure that the five compulsory insurances are implemented in the state, noting that the state cannot afford to lag behind in insurance adoption and acceptance in the country.