NAICOM Seeks Domestication Of Compulsory Insurance In Katsina

The National Insurance Commission (NAICOM) has commenced a partnership process with Katsina State government for the enactment of state laws to domesticate compulsory insurances in the northwest state.

The commission also urged the state government to ensure adequate insurance of its assets and liabilities; liaise with Takaful/insurance operators to determine product best suited for the government, farmers, private companies, MSMEs and individuals in the state.

The head, corporate communications and market development at NAICOM, Abdulrasaaq Abdulsalami made the call during a sensitisation programme for top government functionaries, Khadis and Ulamas on the principles, operations and benefits of the compulsory insurances, Takaful and MicroTakaful in Katsina yesterday.

The workshop was to pave way for the enforcement and implementation of third-party motor insurance in respect of all mechanically propelled vehicles that ply the public roads; all buildings under construction that are more than two floors; all public buildings including schools, offices, hotels; professional indemnity for all medical practitioners and hospitals; and group life insurance cover by employers for employees where there are more than three persons.

“Full implementation of compulsory insurances will help the government cushion the effect of recurring fire inferno in different markets across the state which has been causing so much economic havoc on our traders and the government,” Mr Abdulsalami said.

One of the cardinal objectives of insurance is to protect people against such natural disasters. Abdulsalami said people cannot in some cases, stop it from happening “but we can pre-empt and minimise its impact.”

“Having the markets and goods insured will ensure stability and comfort for the people and also save the government some cost that ordinarily would have gone into compensating traders,” he added.

Beyond the workshop, the insurance watchdog is also seeking to partner on enforcement of compulsory insurances in the state.

Abdulsalami said having Takaful insurance as an alternative to conventional insurance makes it more beneficial that whatever you contribute is not lost at the end of the year.

NAICOM has so far licenced about four Takaful insurance companies to operate in Nigeria providing cover for that segment of the population averse to conventional insurance.