Sunday Thomas, the CEO of the National Insurance Commission (NAICOM), has called on federal and state governments to include insurance for public buildings and buildings under construction in their annual budgets.
Speaking at the 12th meeting of the National Council of Lands, Housing and Urban Development held in Kaduna State, Thomas stated that these categories of insurance are mandatory under Nigerian law and must be adhered to by all.
According to him, 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 (2) floors to procure a builder’s liability insurance policy (building under construction) from any of the NAICOM’ licensed insurers in Nigeria.
Speaking further, he said Section 65 of the Insurance Act 2003 also makes it compulsory for all public buildings in the country to be insured. This is to protect innocent victims in the events of accidents and other disasters that may occur while they are within such premises.
Thomas urged the various state governments to emulate the Lagos State government by domesticating the insurance laws in their respective states.
He listed the benefits of compliance with these compulsory insurances to include a reduction in the federal and state expenditure in the event of a disaster, by shifting the burden to the risk-bearers (insurance firms), hence restoration would not be settled from tax payer’s money
Others are the creation of employment opportunities for citizens and the boosting of internally generated revenue (IGR) of states, among others.