KEYNOTE ADDRESS BY THE COMMISSIONER FOR INSURANCE AND CHIEF EXECUTIVE, NATIONAL INSURANCE COMMISSION (NAICOM), MOHAMMED KARI AT THE INSURANCE INDUSTRY CONSULTATIVE COUNCIL (IICC) TRAINING ON COMPULSORY INSURANCES HELD ON THURSDAY 2ND FEBRUARY, 2017 AT CHELSEA HOTEL, ABUJA
It gives me great pleasure to address this gathering this morning to discuss an issue that I am very passionate about. I want to start by appreciating the efforts of the Insurance Industry Consultative Council (IICC), for this laudable initiative to train personnel of relevant organizations on enforcement of compulsory insurances in Nigeria.
Arguably, the timing of this training could not have come at a more appropriate time especially as we prepare to launch the second phase of the Market Development and Restructuring Initiative (MDRI) which has the enforcement of compulsory insurance as one of its major components.
You will recall that NAICOM launched the first phase of MDRI in 2009 to among others create awareness on the existence of these classes of insurance and educate the public on the benefits of compulsory insurance to the individual and the Nigerian economy. The Commission did so much in this regard across the six geo-political zones in the country. Several media campaigns and road shows were embarked on by the Commission to drive awareness in collaboration with relevant Federal Agencies.
You will agree with me that not much could have be achieved in the area of enforcement if officers and men of the various organs to drive the enforcement are not knowledgeable of the products or laws they are meant to enforce. On the other hand, enforcement would become easier if individuals and entities meant to consume these products are made aware of the benefits inherent in the consumption of these products. So, a key objective this training is meant to achieve therefore is to ensure that both the enforcers and the consumers are sufficiently and adequately trained.
The topic is indeed fundamental to the growth of insurance business not only in monetary terms but in helping to safeguard and protect innocent third parties. There is no doubt that compliance with the laws on compulsory insurance will go a long way to mitigate the adverse exposure to disaster by individuals with access to public places.
The organisers have outlined six very vital areas of focus for this training and have equally assembled some of the finest subject matter experts to deliver the lectures. So I will not attempt to give a lecture.
While the Commission is making efforts for the relaunching of the MDRI an awareness campaign is being run concurrently in the media to better inform the general public of the respective compulsory classes and their benefits. The Commission has stated reaching out to state Governments to domesticate these laws to enable easier enforcement within their jurisdictions. When this is successfully accomplished, it is our optimism that it will drive penetration and contribution of insurance to the Gross Domestic Products (GDP) of the country.
The beneficial importance of compulsory insurance is evident in all sphere of live as it guarantees a form of protection and compensation to victims provided that they are insured, hence they do not have to bear huge financial burden. It also serves as a form of social assistance for the vulnerable people in the society
To the economy, the government would not have to bear the burden alone during catastrophic events such as natural disaster, fire accident thereby saving the government money which can be channeled to augmenting the needs of the citizenry, providing infrastructures and creating employment among others.
In conclusion, I want you to note that the level of compliance to compulsory insurance in the country is still very low. We are gathered here to train you on why and how to enforce these products towards the attainment of a higher level of compliance. I will urge you all to take advantage of this opportunity to equip yourself for the task ahead. The NAICOM pledges to continue to support any effort aimed at promoting compliance with extant laws in this instance.
I wish you a successful outing.
Commissioner for Insurance