published 28-02-2011, 5.56pm

NAICOM TO ENFORCE INSURANCE LAWS

The insurance industry may boom soon as the regulator seeks to enforce dormant Insurance laws

The National Insurance Commission (NAICOM) beginning March 1 will commence the enforcement of compulsory insurance products under the relevant laws. A public notice published by NAICOM states that the enforcement has become necessary to preserve “our income, national wealth, human and material resources”, adding that defaulters will be punished.

The products for which NAICOM seeks compliance are those covering Builders Liability, Occupiers Liability, Group Life Insurance, Medical Professional Liability Insurance and the Motor Vehicle Third Party Insurance, which is the only one for which members of the public seem compelled to provide to avoid Police disturbance on the roads. The Builders Liability Insurance provides that the owner of contractor of a building above two floors take insurance to indemnify against negligence. The Occupiers Liability provides for owners/occupiers of public buildings such as tenement houses, schools, hospitals and hotels to take insurance against hazards such as collapse and fire. Under the Group Life Insurance Act of 2004, employers of a minimum of five staff must take group insurance, while medical services providers must take liability insurance for negligence.

The only law of which the public is conscious is the Motor Vehicle third party insurance, yet several motorists acquire fake insurance papers. This will be the major challenge for NAICOM – how it will enforce the laws. Analysts believe that it will only provide an avenue for law enforcement agencies and bureaucrats to collect bribes from defaulters. That not withstanding the absence of an insurance consciousness has been identified as one of the major gaps in Nigeria’s development. It is expected that insurance enforcement will force builders and affected persons to be more decorous in their work, reducing the spate of failed buildings, fires and negligence.