The National Insurance Commission(Naicom) will soon take enforcement of compulsory insurances to Kwara State, BusinessWorld can now reveal. This developmennt is part of the commission’s sensitisation campaign to ensure that all operators adopt the five compulsory insurances.
Although, the commssion had earlier this month commenced same in Ibadan, Oyo State which is representing the Southwest zone, information has it that Kwara State, representing the North Central will be the next port of call. The programme, it was revealed will touch all the regions in the country.
Mr. Salaami ‘Rasaaq, senior manager, corporate affairs, Naicom said the programme is witnessing huge success, adding that after the completion of Ibadan Zone, Kwara State will be the next state.“ We started from Ibadan, Oyo State. The next State will be Kwara State. The programme will touch every region in the country. We hope this programme will not only redeem the image of insurance firms, it will equally position Nigeria’s insurance industry into the world stage. “ he said. The initiative, he said will also limit if not eradicate the operation of fake insurers in themarket.The five compulsory insurance products include; occupiers’ liability insurance and builder liability insurance both mandated by Sections 64 and 65 of the Insurance Act, 2003 and medical professionals liability insurance mandated by Act 35 of 1999 establishing the National Health Insurance Scheme (NHIS).
Others are employers’ liability insurance, group life insurance for employees as mandated by the Pension Reform Act, 2004 and the third party motor insurance mandated by the Motor Third Party Act.
The task force charged with enforcing the compulsory insurance laws are expected to visit offices, public buildings, buildings under construction, medical and health institutions, among others when they get to Kwara State.They are also to apprehend culprits with the aim of ensuring that they comply with the laws.
Meanwhile, the programme which kick-off in Ibadan recently saw the enforcers being divided into five groups which each group enforcing each compulsory insurance product. The group enforcing third party motor insurance was sub-divided into four groups and positioned along the Lagos Ibadan expressway and other major roads across Ibadan,Oyo State.
Speaking on the enforcement strategy, Mr. Yemi Soladoye, Naicom’s consultant on MDRI said “As far as compulsory insurance is concerned, if you have not complied now, you have already violated the rule. It is not a new law and we are not just introducing it. This is the first place we are starting it, let us concentrate on enlightenment but if there are cases at the end of the day, we still have to make some prosecutions.”
MDRI is a medium term plan under which Naicom is carrying on the first phase of the reforms in the country’s insurance industry. It is premised on four key areas namely; enforcement of compulsory insurance products, sanitisation and modernisation of the insurance agency system, wiping out of fake insurance institutions among others.