WORRIED by government inability to honour promises to respect insurance laws particularly in insuring assets and payment of premiums, insurance managers have renewed call on all tiers of government to obey the Occupiers Liability Insurance (Public Building) law and support the industry to carry the enormous risks in the economy.

The call is coming on the backdrop of revelation from the National Insurance Commission (NAICOM) that the federal government released less than 10 per cent of N2 billion budgeted for insurance premium last year.

According to operators, insurance business is the fulcrum in which all economic activities revolve, government has the primary duty as the greatest spender in the economy to support and encourage the industry to grow by insuring its assets and pay appropriate premium as and when due.

Besides, the agitation may have been informed by reports that government agencies failed to provide profiles of insurance in the ministries, parastatals and agencies to the commission as adviser of government on insurance issues.

Also, industry operators argued that government has not obeyed Section 50(1) of the Insurance Act 1003. This law stipulates that “the receipt of an insurance premium shall be a condition precedent to a valid contract of insurance and there shall be no cover in respect of an insurance unless the premium is paid in advance. Invariably, it presupposes that no insurance cover shall be granted by any insurance company without having received the premium. This law, operators say, the government has consistently disobeyed, showing a disregard for the law it had made, and a poor example to the insuring public on the importance of insurance in the economy.

Industry chieftains who spoke to The Guardian on the need for government at all levels to support the industry said, however, that government has shown interest in the insurance business, but the promises have to be properly allocated with funds and necessary cash backing to pay for government insurance cover.

The Managing Director/CEO, Anchor Insurance Company Limited, Mayowa Adeduro, in his remarks said government remains the biggest spender in the economy and invariably the highest contributor to the premium income of insurance companies. Therefore, the government has a role to play in the development and growth of the insurance industry in the country.

According to him, the industry earnestly need the support and encouragement of government at all levels, to sensitize the insuring public on the importance of insurance in the economy, through the insurance of its assets and properties spread all over the country.

The Managing Director/CEO, Sovereign Trust Insurance Plc, Wale Onaolapo, said “The traditional role of insurance business all over the world is to provide security to other sectors of the economy to take more risks as insurance remains the best risk transfer mechanism.

For the industry to play this role effectively, he said, we need the support of everybody – government, public and private entrepreneurs because insurance provides the peace of mind at any circumstance.

He said “We want to commend the commission for the effort they are making to enforce compulsory insurance in the country, particularly the government agencies because government attitude towards insurance of assets and payment of premium has remained a challenge.”

A chieftain of the industry lamenting the attitude of government on insurance business said “The issue is worrisome in view of the fact that government is the prime mover of the economy and the biggest insurer, therefore, the industry expects the support of government to enable the industry to play its traditional role of risk bearer in the economy.

He said “Over the years government had not been a faithful business partner when it comes to the issue of insurance payment of premium, insurance is a business of utmost good faith which necessitates prompt payment of claims to policyholders and make good returns to investors. The government should look at this issue seriously in the interest of industry and economy.”

The Nigerian Insurers Association (NIA), however, has taken steps to win support and respect for the industry. A source said that to achieve our mission and objectives as a group, it has become imperative to take deliberate steps towards closer interaction and strategic partnership with all stakeholders, particularly the major arm of government – the executive, legislature and judiciary.

“The Council will consider seeking audience with the presidency to table issues such as the role of insurance to the socio-economic growth and development of the nation, the need to give the industry the opportunity to contribute to the formulation of certain government policies and industry representation in appropriate government committees.