Daily Independent Online.
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Monday, July 26, 2004.
Bailey tasks operators on public building
insurance
By
Bethel Obioma
Insurance Correspondent, Lagos
Insurance operators have been urged to fine-tune
their processes to faciliatate a hitch-free implementation of the mandatory
insurance of public buildings enshrined in the Insurance Act 2003.
Commissioner for Insurance, Dr. Oladipo Bailey, said
insurers could only take full advantage of premium income opportunities created
by the act if vital issues like public enlightenment and conclusive
implentation of fool-proof strategies are addressed.
Bailey said other angles the insurers need to cover
include accurate identification of buildings that have adequate/genuine proof
of insurance, prompt prosecution of offenders, effective documentation and
collaboration with the town planning authority, fire service and the Nigeria
police.
He streesed that the aspect of collaborating with the
agencies was one that would ensure that insurers have their support in ensuring
full implementation of the provisions of the act.
While Section 65 of the act provides that every
public building shall be insurerd with a registered insurer against the hazards
of collapse, fire, earthquake and storm, Section 64 forbids any person from
causing the construction of any building of more than two floors without
insuring his liability in respect of construction risks.
"One could say that the provisions of these
sections are a goldmine to the insurance industry. The National Insurance
Commission will use all resources at its disposal to achieve an optimum level
of implementation of the sections," Bailey said.
He added that the industry's game-plan would be
guided by the report submitted by a committe, comprising the industry's
stakeholders on how best to convert the opportunities accruable from public
building insurance.
According to the act, "Public buildings"
include "a tenement house, hostel, a building occupied by a tenant, lodger
or licencee and any building to which members of the public have ingress and
agress for the purpose of obtaining education, or medical service, or for the
purpose of recreation or transaction of business."
Insurance policies under Section 64 shall cover the
legal liability of an owner or occupier of premises in respect to property or
bodily injury, or death suffered by any user of the premises/third parties.
Defaulters, who fail to insure buildings of more than
two floors under construction will, on conviction be liable to a fine of N250,000, or improsonment for three
years, or both. Besides, owners and occupiers, who default with respect to
insurance of public buildings are liable to a fine of N100,000, or improsonment of one year or both, on
conviction.
