Digitilization of Compulsory Insurances: Insurers, Lagos State Educate Stakeholders
In a bid to ensure full enforcement of compulsory insurances in Lagos State, insurance operators in collaboration with the Lagos State Safety Commission has commenced stakeholders’ engagement to educate the people of Lagos State on the importance of insurance and the need for them to embrace it.
Lagos State Safety Commission and the Nigeria Insurers Association (NIA) are working on the digitalization of Compulsory insurances for the people of Lagos State for accessibility and affordability.
The theme of the event was: “Lagos State Digital Compulsory Insurance (Public Buildings) for Lagos State Government – Safer Lagos Insurance.”
Speaking Monday at the stakeholders’ meeting on the compulsory insurances (Public Building) for Lagos State Government and during the press conference held in Alausa, the Director-General, Nigerian Insurers Association, Yetunde Ilori, highlighted the rationale behind the NIA’s collaboration with the Lagos Safety Commission which she said is to educate the people on the importance and benefits of insurance.
The Director-General, Nigerian Insurers Association (NIA) Mrs. Yetunde Ilori, said Section 65 of the Insurance Act 2003 stipulates that public buildings must be adequately insured ostensibly to cushion the impact and reduce burden and liability on property owners/government.
While calling on all and sundry to support the initiative to achieve the noble objective for which the compulsory insurance act on building was enacted, she noted that to actualise this initiative, insurers and the state has resolved to digitalised the purchase of occupier’s liability insurance in Lagos State.
She said the initiative is not just for enforcement, but to create awareness about benefits accruable from making compulsory occupier liability building insurance a culture in Lagos State.
According to her, “We are taking the purchase of occupiers Liability Insurance to another level. What we are doing here today is to sensitize the public that insurance is not about internally generated revenue (IGR); it’s not about what comes to insurance industry, but about the safety of all.
“Insurance is not to prevent an event from happening; ours is to ensure when it happens, we are able to proffer solution, by providing comfort to people that are vulnerable. Ours is to ensure the continuity of your business even when something happens.
“It is not about making business difficult; it is about sustainability. It is about doing the needful incase unfortunate happens you don’t have to settle the liability with your life savings.
“Insurance companies are set up to pool their risks together and ensure the sustainability and continuity of businesses. Insurance provides the peace of mind we need to run our businesses.”
While commending Lagos State government for domesticating the Laws passed by the Federal Government, especially on the implementation of the Compulsory insurances, she called on other states to follow suit.
She assured stakeholders that the present crop of insurance companies in the country takes claim payment as their major priority, adding that the industry have the capacity to take care of all manner of risks.
Also speaking at the stakeholders engagement conference, the Director-General and Chief Executive Officer, Lagos State Safety Commission, Lanre Mojola, traced the genesis of the partnership between his Commission and the NIA, stating that it started many years ago.
He said the event is not only about the enforcement of the compulsory insurances in Lagos State but about the awareness of the importance and benefits of insurance for the populace and geared toward seeking support on the initiative to domesticate the Federal Government law on compulsory insurance on public buildings.
He said that the compulsory insurance on public buildings known as the Owners Occupiers Liability would cover different entities of public places or public buildings including event centres, cinemas, schools, hospitals, worship centres, restaurants and bakeries.
The Director-General noted that the state, in a bid to ensure the safety of lives and property, found it necessary to implement the statutory insurance for the benefit of all its residents.
“Safety is everyone’s responsibility, and statistics, as carried out by the commission, has revealed that over 480 buildings nationwide have collapsed within the last 44 years.
“This is the data we recorded, imagine so much more that were not recorded,” he said.
According to him, this indicated the strength of insurance to bear liability, as most times, the government would have to pay compensation to the affected individuals.
Mojola stated that though it is the responsibility of the government to protect lives and property, rather than paying for losses, the government should focus on good governance and security in line with its THEME agenda.
He said that the state government would ensure that everyone is protected in the state and safe when using public places.
According to him, in case of unfortunate incidents, the government must also ensure that the victims are covered by insurance or compensated where death occured.
“Now that we have identified the problem, we have begun engagement, then we will educate the public on the need to key into the implementation of the law before we begin enforcement and sanction after the law is fully in place.
“We have met with different associations including operators of cinema houses, event centers owners, school owners, owners of bakeries, restaurants owners and a host of others to intimate them on the importance and benefits of taking up this very important insurance.
“Ours is a Safety Commission and our mandate is to ensure safety of every resident in the state. Safety is everybody’s responsibility. Before we get to where we are today, we started by understanding what the challenges are; we have done evaluation across the state in terms of risk assessment and we have realize that this is the right time for us to start the implementation of compulsory insurance,” Mojola explained.
He said the partnership with insurance sector to implement and enforce compulsory insurances would lead to a safer Lagos, just as he called on all to embrace insurance.
According to him, “there had over the years been numerous accidents and incidents such as natural disasters, building collapses, fires, explosions that have resulted in injuries, permanent disabilities, loss of lives and property, adding that to protect Nigerians and their businesses from vagaries in the event of unfortunate incident leading to injury, property damage or death, the Federal Government through various Acts of parliament promulgated laws making seven insurance policy compulsory across the federation.
“Due to several factors, some of these compulsory insurance laws have not been fully implemented and as such when dangerous occurrences and disasters happen, the citizenry look up to the government for compensation,” he said.
“What we are saying now is that safety is everybody’s responsibility. Yes, its government responsibility to protect life and property of the citizenry. Citizens are also expected to play their role by embracing insurance as well as being safety conscious always.”
Some of those who attended the stakeholders’ meeting included the Commissioner for Insurance and Chief Executive Officer, National Insurance Commission (NAICOM), Olorundare Sunday Thomas, who was represented at the event by Ajibola Bankole; President, Nigerian Council of Registered Insurance Brokers, Rotimi Edu; President, Chartered Insurance Institute of Nigeria (CIIN), Sir (Dr) Muftau Oyegunle; President, Association of Registered Insurance Agent of Nigeria (ARIAN), Kunle Odewunmi.
Others included the Managing Director of Insurance and broking Companies namely: LASACO Assurance Plc, Razzaq Abiodun; Executive Director, General Business, Leadway Assurance, Adetola Adegbayi, Managing Director/CEO, AfriGlobal Insurance Brokers Limited, Casmir Azubuike amongst others.
