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How to attract state governments’ acceptance of compulsory insurance

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Efforts by industry operators to educate Nigerians on the benefits of insurance have received a boost, as state governments have expressed support for the awareness campaign.

For instance, the Chairman, Nigeria Governors’ Forum (NGF), and Governor of Ekiti State, Kayode Fayemi, pledged to work with the National Insurance Commission (NAICOM), on the implementation and enforcement of compulsory insurances.

Fayemi disclosed this when the management of NAICOM led by the Commissioner for Insurance, Sunday Thomas, paid him a courtesy visit in Ado Ekiti, Ekiti State.

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According to him, Ekiti State takes insurance seriously, but can still do more. “Rest assured that we will work with you, and we may need to invite you to meet with 36 state governors to apprise them of your initiatives.”

“We have taken note of the benefits inherent in these compulsory insurances, and we are always desirous to collaborate.

“The State Commissioner of Finance, and the Head of Service handle insurances and will be available to work with your team,” he assured.

He advised the insurance sector to be flexible in creating new products that are more aligned to the environment.

Thomas had used the occasion to seek collaboration with the government in the enforcement of compulsory insurances in the state.

He noted that the financial services industry is central to the growth and sustainable development of any nation, and because of its direct impact on access to finance; it is a catalyst to improved income, poverty reduction, and stability in the financial system.

He stressed that as a subset of the financial services sector, the insurance industry is a pivot to guarantee the sustainability of growth and development of the state and its people.

“We have therefore noted the necessity to plant ‘insurance’ and ‘people’ at the centre of any equation that tends to create, enhance, sustain and manage growth and development in any economy.

“As a people, human activities have associated risks, and in spite of every precautionary measure to avoid the occurrence of losses or damages, the unexpected still occurs.

“In consequence of the losses, victims are prone to suffering, which in many cases may lead to total impoverishment of a large proportion of those affected. To ameliorate the situation of victims, laws have been put in place for an arrangement that will ensure that victims and especially third parties are adequately compensated,” he said.

Thomas maintained that the objectives of protecting third parties and relieving the government of the avoidable burden of compensation from the meagre wallet of the government led to the enactment of various laws on compulsory insurance products.

Over the years, the Commission has embarked on a series of programmes aimed at a nationwide massive public enlightenment with respect to compliance with the laws on compulsory insurances, he said.

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