Most Assets Of Govt Not Insured-NAICOM

The National Insurance Commission has expressed worry over the inability of the Federal, State and Local Government to insure most of their assets and liabilities.

The Commission which is the apex regulator of insurance business in Nigeria stated that most of the assets and liabilities of government assets are not covered by any insurance policy.

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The Commission implored governments across all tiers to reduce their expenditures through the provision of insurance for all their risks.

The Commissioner for Insurance, Mr Sunday Thomas, said this at the sensitization workshop for insurance desk officers of Ministries, Departments and Agencies on insurance of Federal Government assets and liabilities in Abuja.
He noted that the essence of insurance of government assets and liabilities is to cushion the impact and reduce the burden that the government would have to bear in the likely occurrences of catastrophic events such as natural disasters, fire, accidents, building collapse, injuries or death to third parties, amongst others.

This, he stated, would help to save the government money which could be channelled towards augmenting the needs of the people, providing infrastructure, and creating employment, among others.

He said, “It is very worrisome to the Commission that most assets and liabilities of government are never adequately and appropriately insured, which further accentuated the need for urgent measures to be put in place by the Commission to ensure that government gets value for money in the purchase of insurance by MDAs. It is the desire of NAICOM to change this narrative for good.”

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According to him, NAICOM in 2009, launched the Market Development and Restructuring Initiative project which aimed at creation of awareness on compulsory insurance products, education of the public on the long-term benefits of insurance to policyholders and the economy at large, among others.

He stressed that while NAICOM bore the responsibility of disseminating key messaging on the benefits of compulsory insurance, it relied on Government Ministries, Departments and Agencies to help domesticate the initiative in their respective offices and perhaps, serve as the primary vehicles for enforcement of compulsory insurances in their various MDAs.

He maintained that, the sensitisation workshop was aimed at equipping insurance desk officers with the necessary tools to ensure that all MDAs have adequate insurance coverage for all government assets and liabilities to curb wastage occasioned by losses of uninsured assets.

“At the end of this Workshop, it is expected that insurance desk officers will now have the capacity to gauge the insurance protection needs of government assets under their purview and provide their principals with technical advice on the required insurance coverage for government assets and liabilities,” he stated.

Thomas stated that building the capacity of insurance desk officers, enthroning transparency and accountability to ensure that government gets value for money in the purchase of insurance would help take both government and insurance practitioners a step further in contributing effectively to the economic growth and development of Nigeria.

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