NAICOM to mandate compulsory insurance cover for govt assets

 

By Bankole Orimisan

The National Insurance Commission (NAICOM) may release a new guideline that would compel Federal Government’s ministries, departments and agencies (MDAs) to adopt insurance cover for all FG’s assets.

Before now, MDAs did not patronise the sector. But underwriters are calling on the federal and state governments to procure appropriate insurance contracts to protect government assets spread across the country.

Apparently worried by the government’s levity and unwillingness to insure public assets, the professionals said the #EndSARS experience should serve as a lesson to all government agencies.

The stakeholders, who spoke at an industry forum, believed that both the NAICOM and the practitioner associations have brought pressure to bear on the government considering the large-scale destruction of public assets during the protest.

Consequently, they said, the experience should inspire the government, at all levels, to ensure its assets are insured.

Speaking at a national workshop on micro-insurance organised by Safe Sapphire Foundation, in partnership with the industry’s regulator in Abuja, Head of Corporate Communications and Market Development Department, NAICOM, Rasaaq Salami, highlighted the essence of insurance in risk mitigation.

Salami said: “We believe that if destroyed properties were insured, the insurance companies will pay the appropriate claims to them.”

To this end, the Commission revealed that it is adopting guidelines that would ensure all Federal Government assets are insured, a move to drive penetration and profitability for the insurance sector.

The Deputy Commissioner, Technical, NAICOM, Sabiu Abubakar, who spoke at the Chartered Insurance Institute of Nigeria (CIIN), Second Edition of 2022 Business Outlook Seminar, in Lagos, said the guidelines, which are being developed in partnership with the Ministry of Finance, Budget and National Planning, would be unveiled soon.

He maintained that the guidelines would help to eliminate the sharp practices perpetuated by MDAs and insurance operators.

He pointed out that the guidelines would also mete out appropriate sanctions to defaulters.

Abubakar noted that the guidelines only cover national assets, adding that NAICOM is working to get state governments to domesticate the planned law, which would enable the industry to provide adequate insurance cover for assets in the states.

He submitted that NAICOM has strengthened its regulatory oversight and implored operators to settle genuine claims within a reasonable time.