Compulsory Insurance will Help Cushion Effect of Fire Outbreak- NAICOM
The National Insurance Commission (NAICOM) has said that full implementation of compulsory insurance will help the government cushion the effect of recurring fire inferno in different markets in the Country.
NAICOM’s Head of Corporate Communications and Market Development, Alhaji Abdulrasaaq Abfulsalami stated this during the sensitization programme for top government functionaries, Khadis, and Ulamas in Katsina State.
He said fire outbreaks has caused so much economic havoc on our traders and the government, adding that the cardinal objectives of insurance is to protect us against such natural disasters.
“We cannot in some cases, stop it from happening but we can preempt and minimize its impact”, he said.
He noted that 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 said the Insurance Act 2003 and other relevant Laws of the Federal Republic of Nigeria made provisions for certain insurances to be compulsory on us towards the protection of innocent third parties who may fall victims of unforeseen occurrences like road accidents, building collapse, fire, accidents in public buildings – offices, shops, schools, malls, etc.
The NAICOM spokesperson further said that the main objective of the workshop is to sensitize the top Government functionaries of Katsina State, Khadis and Ulamas on the principles, operations and benefits of the Compulsory Insurances, Takaful and Micro-takaful.
‘It is imperative to mention that we are in Katsina today to discuss the concept of Islamic insurance and forge this partnership with the government and people of Katsina State in order to pave way for the enforcement and implementation of the under listed insurances made compulsory by extant laws to guarantee the protection of the people of Katsina State”
He expressed appreciation to the government of Katsina State for the swift response to NAICOM’s request to organise this sensitisation workshop for stakeholders in the state as a window provided for better understanding of Islamic way of Insurance and discussing a way forward for Takaful to thrive in the state.
Beyond this workshop we will also seek to partner on enforcement of compulsory insurances in the state, and we expect the state executive council to assist on the following:
Incept the process of enacting state laws to domesticate the compulsory insurances earlier highlighted in conjunction with the state legislature, ensure adequate insurance of assets and liabilities of Katsina State government, liaise with Takaful/insurance operators to determine product best suited for the government, farmers, private companies, MSMEs and individuals in the state, conduct on the spot awareness and sensitisation campaigns across the state.
He also said that going by the population of farmers in Katsina state, it was obvious that the State is a critical stakeholder in increasing insurance penetration and growth of the sector by ensuring that farmers are adequately protected, stressing that a partnership with the Commission will be a golden opportunity to assist Katsina state peasant farmers, traders and civil servants when they need it most and for the financial services sector to also increase financial inclusion which is one of the cardinal thrust that has been a forefront policy of the federal government for a sustainable economic development and lifting families out of abject poverty.
He added that with the introduction of Islamic insurance (Takaful) and Microtakaful for small businesses, Katsina state will not be let down by the insurance industry, noting thay 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.
He announced that the Commission has so far licenced Four (5) Takaful insurance companies to operate in Nigeria providing cover for that segment of the population averse to conventional insurance, adding that some of these Takaful companies are in Katsina and have been provided with the opportunity to interface with participants and showcase their respective products.
