NAICOM Urges State Govt to Domesticate Compulsory Life Insurance for Citizens

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The National Insurance Commission (NAICOM), has appealed to state governments to domesticate compulsory group life insurance and other insurances in their states.

Mr. Sunday Thomas, the Commissioner for Insurance of NAICOM, made the appeal on Tuesday when he visited Gov. Kayode Fayemi of Ekiti State.

The commissioner in a statement in Abuja also appealed to state governments to create a structure for the enforcement of compulsory insurances.

Thomas said the structure which would be created by the government would be supported by the commission.

He listed some of the relevant mandatory insurance to include group life insurance for all employees of both public and private sectors and insurance for all buildings under construction more than two floors – builders’ liability.

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Others are all public buildings including schools, offices, hotels, hospitals, markets (occupiers’ liability), professional indemnity for all medical practitioners, and third party motor vehicle insurance.

“Over the years, the commission has embarked on series of programs aimed at a nationwide massive public enlightenment with respect to compliance with the laws on compulsory insurances.

“In consequence of the losses, the victims are prone to sufferings which in many cases may lead to total impoverishment.

“The objectives of protecting third parties and relieving the government of the avoidable burden of compensation from the meager wallet of the government led to the enactment of various laws on compulsory insurance products.

“It is on the strength of the above that the commission is seeking collaboration with the state government in the enforcement of the above mentioned compulsory insurances in the state.

“As the Chairman of the Nigerian Governors’ Forum, there is no better place to start the campaign than Ekiti State.’’

In his response, Fayemi advised the insurance sector to be flexible in creating new products that would align more with the country’s environment.

He said the state was taking insurance seriously but could still do more while assuring the commission that the state would work with it.

“We may need to invite you to meet with the 36 state governors to apprise them of your initiatives.

“We have taken note of the benefits inherent in these compulsory insurances and we are always desirous to collaborate,’’ Fayemi said.

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