Insurance Of Public Building Solution To Building Collapse

The insurance of buildings and buildings under construction is a critical safety enhancer and solution to the menace of building collapse across the country.

Executive director, finance, systems, and investments at Consolidated Hallmark Insurance, Mr. Babatunde Daramola stated this in Abuja at the sidelines of the 2-day National Insurance Conference 2023 organised by the National Insurance Commission (NAICOM). The conference had the theme “Redefining Safety – Insurance Solutions for Public Buildings and Buildings under Construction”

Mr. Daramola noted that by virtue of the Insurance Act, this is one of the compulsory insurances however it is not being enforced.

He said driving this narrative at this time is critical to enhancing the safety of public buildings across the country, adding that CHI has sufficient expertise and capitalisation to insure public buildings across the country.

“The key objective of ensuring public buildings is not to make money. The key objective is to solve societal problems and if we make money in the process, it is an add-on” he said.

“We have seen cases of building collapse across the country. When a building collapses, apart from the material damages, sometimes we have innocent victims thus the government has made it compulsory that owners of these properties insure them. The insurance will ensure that when a building collapse happens, the insurance will pay back the loss on the property and victims. Sometimes the victims are only injured, but you still need money to finance the medical bills” he explained.

“So NAICOM through this conference is enhancing collaboration between the regulator, the government agencies responsible for buildings safety, even lawmakers and operators to deal with the problem based on the solution the government has put in place. We are proud to be one of the sponsors of this conversation” the ED said.

Daramola further stated that CHI provides insurance for general businesses and sister companies that handle finance business, health management, and micro-insurance life products.

“We are ready to provide insurance cover on public buildings and buildings under construction. We are available in our physical offices and online in real time. You can buy insurance real time online at our website. The issue people have always talked about when it comes to insurance of claims settlement. We pride ourselves on knowing the business. We have been around since 1991 and we will be around for a longer time. We settle genuine claims promptly” he stated.

Also speaking at the sidelines, Mr. Mac Ekechukwu, the Regional Director, Northern Operations said the conference is very significant for the economy of Nigeria.

“If you are following the trend, in 2021 alone at least 49 buildings collapsed in Lagos alone. You can imagine the exposure to both human and material loss. Of course, we don’t even have sufficient data, it could be more. If these buildings were insured, the level of losses wouldn’t be much. In the insurance of public buildings, everyone is interested because we are all exposed in one way or the other. The government is exposed, the corporations are exposed and individuals are exposed” Mr. Ekechukwu explained.

“It is important people are aware of the consequences of not insuring their public properties and insurance penetration will be the biggest beneficiary.

He said CHI is poised to serve the public by ensuring their risk exposures are mitigated” he stated.

“We have a presence across the country and we give competitive rates for our clients to afford to pay. We have a subsidiary, Hallmark Finance Company Limited, which can help you structure your premium if you don’t have the money at the time” he assured.