NAICOM Calls On Katsina State To Enact Laws To Domesticate Compulsory Insurances
The National Insurance Commission (NAICOM) has called on the Katsina State Government to begin the process of enacting state laws to domesticate the compulsory insurances in the state in conjunction with the state legislature.
The Commission also urged the Katsina State Government to ensure adequate insurance of assets and liabilities of Katsina State government; liaise with Takaful/insurance operators to determine the products best suited for the government, farmers, private companies, MSMEs and individuals in the state as well as conduct on the spot awareness and sensitisation campaigns across the state, amongst other things to make the people of the state enjoy the benefits of insurance.
The Head, Corporate Communications and Market Development, NAICOM, Mr. Rasaaq Salami, made the call at the sensitization programme on the implementation of compulsory and Takaful insurances organized by NAICOM for top government functionaries, Khadis and Ulamas in Katsina State recently.
He said the full implementation of compulsory insurances will help the government cushion the effect of recurring fire inferno in different markets across the state which has been causing so much economic havoc on our traders and the government.
Salami said one of the cardinal objectives of insurance is to protect the insured or policyholder against natural disasters and other unforeseen or unexpected occurrences.
“We cannot in some cases, stop it from happening but we can pre-empt and minimise its impact. 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.
“During the Commission’s visit to His Excellency, Governor Aminu Bello Masari, the Commissioner for insurance/CEO, NAICOM, did mention that going by the population of farmers in Katsina state, it is obvious that the State is a critical stakeholder in increasing insurance penetration and growth of the sector by ensuring that farmers are adequately protected.
While calling on the Katsina State Government to partner with the Commission for a successful implementation of the initiative, Rasaaq said “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 sustainable economic development and lifting families out of abject poverty.
“The inherent benefits to the people and government of Katsina state were well articulated during the visit of the management of NAICOM to the Governor, but let me add that with the introduction of Islamic insurance (Takaful) and Microtakaful for small businesses, Katsina state will not be let down by the insurance industry, we indeed need each other to grow. Having 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.”
Rasaaq hinted 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 here and have been provided with the opportunity to interface with participants and showcase their respective products.
NAICOM was in Katsina State 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 following insurances made compulsory by extant laws to guarantee the protection of the people of Katsina State.
The Compulsory insurances include Third party motor insurance in respect of all mechanically propelled vehicles that ply the public roads; All Buildings under construction that are more than two (2) floors; All Public Buildings including Schools, Offices, Hotels, Hospitals, shopping malls etc.; Professional indemnity for all medical practitioners and hospitals; Group life insurance cover by employers for employees where there are more than 3 persons and Annuity for retirees as provided under the Pension Reform Act 2014
