NAICOM commences enforcement of compulsory insurances of public buildings
The National Insurance Commission (NAICOM) will today commence the enforcement insurances of public buildings across the country.
This is in line with the provision of Section 65 of the Insurance Act, 2003, which makes it compulsory for all public buildings to be insured by their owners.
Disclosing this in a joint media briefing with the Comptroller-General of the Federal Fire Service, Anebi Garba, the Commissioner for Insurance, Mohammed Kari, stated the need to for insurance to take its rightful position in the scheme things.
Recall that Section 65 of the Insurance Act, 2003 states that every public building shall be insured with a registered insurer against hazards of collapse, fire, earthquake, storm and flood.
Public buildings, according to the Act, include a tenement house, hostel; a building occupied by a tenant, lodger or licensee, and any building to which members of the public have access to for educational, medical and recreational purposes.
According to the Act, an occupier or owner of a premises, who is in default of law commits an offence and is liable on conviction to a fine of not more than N100,000, or to imprisonment for one year, or both.
The act stipulates that 0.25 per cent of the net premium received by every direct insurer on policies issued under the section shall be paid quarterly into a Fire Services Maintenance Fund for the purpose of providing grant and equipment to institutions engaged in firefighting services.
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