We are in Katsina to drive insurance, takaful penetration – NAICOM

As implementation of compulsory insurances, takaful and micro-takaful kicks off in Katsina state, the National Insurance Commission (NAICOM) has expressed delight for the golden opportunity granted the Commission by the state governor, Rt. Hon. Aminu Bello Masari to drive insurance/Takaful penetration in the state.

The Commission ably represented by Alhaji Abdulrasaaq Abdulsalami during the sensitisation workshop in the state, made it clear to the participants at the workshop that the main objective of the workshop was to sensitize the top Government functionaries of Katsina State, Khadis and Ulamas on the principles, operations and benefits of the Compulsory Insurances, Takaful and Micro-takaful.

Said he, ‘‘It is imperative to mention that we are in Katsina today 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 list of insurances made compulsory by extant laws to guarantee the protection of the people of Katsina State.’’

In the list included: the 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 floors; All Public Buildings including Schools, Offices, Hotels, Hospitals, shopping malls etc.

Others include: Professional indemnity for all medical practitioners and hospitals; and 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

During the workshop, Salami stated that, the Insurance Act 2003 and other relevant Laws of the Federal Republic of Nigeria made provisions for certain insurances to be compulsory towards the protection of innocent third parties who may fall victims of unforeseen occurrences like road accidents, building collapse, fire, accidents in public buildings – offices, shops, schools, malls, etc.

Beyond the present workshop, the Director of Corporate Communication stated that the Commission will also seek to partner on enforcement of compulsory insurances in the state, and expect the state executive council to assist on the following: Incept the process of enacting state laws to domesticate the compulsory insurances earlier highlighted in conjunction with the state legislature; Ensure adequate insurance of assets and liabilities of Katsina State government.

Other include Liaising with Takaful/insurance operators to determine product best suited for the government, farmers, private companies, MSMEs and individuals in the state; Conduct on the spot awareness and sensitisation campaigns across the state, etc.

He asserted that 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 traders and the government.

According to Salami, ‘‘One of the cardinal objectives of insurance is to protect us against such natural disasters. 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, he affirmed.

Salami further stated that 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 a sustainable economic development and lifting families out of abject poverty.

‘‘But let me add that with the introduction of Islamic insurance (Takaful) and Micro-takaful 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.

‘‘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. Some of these Takaful companies are here and have be provided with the opportunity to interface with participants and showcase their respective products. Please feel free to ask questions where and when you need clarification.

‘‘The Management and Staff of the National Insurance Commission are sincerely appreciative of the support of the Katsina State Government in this drive to give insurance a lift in Katsina state.’’