INSURANCE companies in Nigeria have adequate capacity to handle disasters and pay compensations for insurable risks.
Mr. Fola Daniel, commissioner for insurance, National Insurance Commission (Naicom) said insurance industry in Nigeria has adequate capacity to respond to risks.
He said this in response to the incident in Japan where several houses were demolished in one of the major earthquakes in the world, which led to near collapse of the economy of Japan.
He sympathised with the victims of the natural disaster but said the damages in Japan were beyond insurance coverage and could not be due for insurance claims.
Japanese experience was an exemption in the standard insurance policies, he said.
According to him, “Insurance contracts hardly cover extreme climatic catastrophes worldwide. I think we must continue to thank God that the incident of earthquake and other disasters of the weather are not common here and that does not mean it cannot happen.”
He however said if such situation occurs in the country, insurance companies in the industry will respond to it as stipulated in insurance policy. The insurance industry will respond as much as it required under the contract of insurance, if we do have that kind of catastrophe in Nigeria, he said.