The Lagos State Government wants effective enforcement of Compulsory Insurance Scheme (CIS) in its territory to mitigate risks resulting from violation of insurance regulations in various sectors.
Already, the state has constituted an enforcement team to tackle abuses by individuals and corporate bodies engaged in environmental and related activities within the state.
Speaking at atraining organised for members of the Capital Market Correspondents Association of Nigeria (CAMCAN) in Lagos, Head of Retail Sales at AIICO Insurance, Taofik Ayeni, said the state government has has set up a team of insurance practitioners and other professionals to enforce compliance.
The event was part of the association’s capacity building initiatives to enhance members’ skill in financial market reporting through knowledge of industry-specific operations.
Ayeni, who spoke on “Safety, Risk and Financial Management” with emphasis on Insurance, pointed out that business activities globally, had become more complex in recent times.
He said the development posed great challenge to financial market reporters who are expected to show demonstrable understanding of the beat they handle.
He disclosed that the CIS enforcement team, comprising insurance practitioners and experts in other fields, would take effective steps to combat increasing incidents of building collapse in Lagos.
According to him, there is high level of abuse and compromise among those involved in environment-related activities as they overlook policy guidelines meant to guarantee the safety of life and property.
“Lagos State Government has set up a team of insurance practitioners and other professionals to enforce Occupiers’ Liability Insurance under the Compulsory Insurance scheme” Ayeni said.
Compulsory insurance, consisting of five products, refers to a class of Insurance made compulsory by law, frequently with the objective of providing protection to third parties and the general public. It was introduced in 2003.
The CIS five products are the Third Party Motor Insurance; Builders Liability Insurance; Occupiers’ Liability Insurance; Health Care Professional Indemnity (National Health Insurance); and Group Life Insurance (under Pension Reform).
Ayeni identified low awareness among the factors militating against insurance growth in Nigeria, coupled with negative attitude of the public towards the industry.
He advised CAMCAN members to intensify insurance awareness through their respective media platforms by explaining the benefits and workings of various insurance policies.
Ayeni highlighted different dimensions of insurance and application of their policies in education, trading, anufacturing, family interests and other areas.
He pointed out that most school owners were reluctant to buy into Occupiers’ Liability Insurance meant to provide cover to pupils, students and workers in their institutions against building collapse.
“Can you imagine the fatal outcome of a school building collapsing on children and teachers when classes are in session?
Has anyone given a thought to the calamity resulting from the collapse of a house where people are working? This is the reason for the Occupiers’ Liability Insurance”, Ayeni said.
He said that Occupiers’ Liability Insurance would transfer the risk of such accident to the insurer, which will take the responsibility of providing the required compensation in favour of the assured.
