Members of the Implementation and Monitoring Committees for compulsory insurances at the state level have started gathering data on public buildings and buildings under construction across their respective states.

The project which is in line with the Market Development and Restructuring Initiative (MDRI)   by the National Insurance Commission (NAICOM) was to ensure smooth implementation and enforcement of the compulsory building insurances.

The Commissioner for Insurance, Mr. Fola Daniel, stated this in the commission’s annual report made available to THISDAY recently.

He stated that the commission was sensitising the public on compulsory insurance products including group life assurance, professional indemnity for medical professionals, motor third party, public buildings and buildings under construction.

Daniel said the State Implementation and Monitoring Committees (SIMCs) have been  charged with the collation of data on public buildings and buildings under construction and sensitisation of the public on compulsory insurance products.

He recalled that Section 64(1) of the Insurance Act, 2003 provides that: “No person shall cause to be constructed any building of 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.”

Section 65(1) of Insurance Act 2003 also provides that “every public building shall be insured with a registered insurer against the hazards of collapse, fire, earthquake, storm and flood.”

The Act went further to define “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 under this section covers 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.

The NAICOM boss added that the committee also conducted massive public awareness campaigns, as well as facilitated collaboration with other trade associations within the respective states to realise the objectives of the MDRI.

On-site enforcement of compulsory insurances has now commenced in the country since November 15, 2011as promised by NAICOM.

Commissioner for Insurance said that NAICOM was poised to start the enforcement of compulsory insurance covers as it believes the law of the land has to be strictly obeyed.      
                   
Although 16 insurance products are made compulsory by law, NAICOM had indicated intention to strictly enforce five which have great implications for the nation’s economy.

The five products are the Third Party Motor Insurance (Section 68 of Insurance Act, 2003); Builders Liability Insurance (Section 64 of Insurance Act, 2003); the Occupiers’ Liability Insurance (Section 65 of Insurance Act, 2003); Health Care Professional Indemnity of Section 45 of the Nigerian Health Insurance Scheme, 1995 and the statutory group life Insurance of Section 9(3) of the Pension Reform Act, 2004.

Source: Thisday/Nnamdi Duru