Compulsory Insurance'll Raise Awareness
By Omolara Akintola
In view of government's recent intervention which made third party liability of public buildings compulsory in the country, an insurance practitioner, Mr. Ben Oke, has posited that compulsory insurance of public buildings would re-awaken insurance consciousness among Nigerians.
He made this submission in a paper presentation at a seminar organised by the Nigerian Insurers' Assosiation (NIA) recently in Lagos. He reviewed compulsory insurance of public buildings as contained in the Insurance Act, 2003, saying that it will profit not only the insurance companies but also the Nigerian at large. He said the industry is set to sentisise Nigerians on the existence of this class of insurance businness.
Oke noted that the implication of this development on the public is that in addition to the awareness that would be created, undeserved poverty would also be averted. He maintained that in the course of performing its basic functions, insurance serves as a mechanism for reducing financial risk.
The presenter observed that when compulsory insurance of public buildings gets implemented fully, the benefit would accrue not only to public and the insurance industry, the socio-economic environment in the country would be improved.
Oke said that the Nigerian goverment has embarked on a programme of poverty eradication, which insurance has a major role to play, and the insurance industry underwrites risk for public hazards, insurance would reduce poverty.
Dwelling on provisions of the Act, he noted that some aspects of goverment business would also be boosted as the law also mandates insurance companies to pay specific amount to improve fire sevice facilities. This he said, would turn the pathetic state of the fire service round for good and raise the morale of fire service men.
"It is my considerded opinion that even if such disbursement as may go to these bodies whould not be adquate in the meanwhile, they will still represent a good start, what is more, the much desired attention will henceforth be focused on this sector which has been abandoned over the years at the expense of the frequent destruction of life and property that prowl the citizens' personal and corperate properties''.
Oke also stated that compulsory insurance of public buildings would achieve the desired result and also reduce the expenses of goverment on natural or man made disasters.
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