Thomas advises govts to manage risks with insurance

The Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission, 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 were made compulsory by extant insurance laws in Nigeria and, must be complied with by all.

While mentioning some of the benefits, he said they included, “Reduction in the federal and state governments’ expenditure in event of a 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; creation of employment opportunities for citizens of the state; and opportunity for enhancing the Internally Generated Revenue of the respective states among others.”

According to Thomas, 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 said Section 65 of the Insurance Act 2003 also makes it compulsory for all public buildings in the country to be insured, to protect innocent victims in the events of accidents and other disasters that may occur while they are within such premises.

According to a statement from NAICOM, Thomas spoke at the 12th meeting of the National Council of Lands, Housing and Urban Development, held in Kaduna State.

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