State governments tasked on domestication of building insurance law

Stakeholders in the insurance industry have frowned at the rise of building collapse across the country and the absence of insurance coverage for victims.

The insurance practitioners also tasked state governments to domesticate the compulsory building insurance law to protect lives and property in their respective states.

The National Insurance Commission (NAICOM) established the compulsory building insurance law under sections 64 and 65 of the Insurance Act 2003.

The policy also mandates compulsory insurance coverage for buildings under construction of over two floors and a fine of N250,000 or three years imprisonment for defaulters.

The policy covers losses incurred on building damages such as fire, flood, storm, earthquake, vandalism, malicious damage, theft, collapse accidental damage, legal liability, loss of rent explosion and impact damage.

In a letter addressed to Gov. Dapo Abiodun, the President of the Council, Prince Babatunde Oguntade, commended the Ogun State government’s enforcement of relevant insurance policies as a step in the right direction, adding that the action would bring about economic growth and development.

He said the enforcement of building insurance policies would not only guarantee the safety of workers but would also bring about positive changes in the state’s economy.

Oguntade assured the state government that the NCRIB would partner with it to ensure the fruition of the initiative.

Speaking at a stakeholders’ meeting held in Abeokuta, organised by the Chartered Insurance Institute of Nigeria (CIIN), the state’s Commissioner for Physical Planning and Urban Development, Olatunji Odunlami, noted that the enforcement of the compulsory insurance was in tandem with the provision of Ogun State Building Production Management Authority Regulation (OGBPMA), 2022.

According to him, the All Risk Insurance Policy is maintained by the contractors or developers and covers both human and material assets during the entire construction period, ensuring that persons engaged to work on-site or who have lawful access to be on-site are protected against any form of injury, loss or damage.