Insurance

NAICOM pushes for cut in government expenditure via Insurance

Participants at the event

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Chuks Udo Okonta

The National Insurance Commission (NAICOM) has implored governments to reduce their expenditures through the provision of insurance for all their risks.

The Commissioner for Insurance 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 likely occurrences of catastrophic events such as natural disasters, fire, accidents, building collapse, injuries or death to third parties, amongst others, thereby saving the government money which can be channeled towards augmenting the needs of the citizenry, providing infrastructure, and creating employment, among others.

“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,” he said.

According to him, NAICOM in 2009, launched the Market Development and Restructuring Initiative (MDRI) 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, stressing 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 submitted.

Thomas posited 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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