REMARK BY THE HEAD, CORPORATE COMMUNICATIONS AND MARKET DEVELOPMENT, NATIONAL INSURANCE COMMISSION, ALHAJI ABDULRASAAQ ABDULSALAMI DURING THE SENSITISATION PROGRAM FOR TOP GOVERNMENT FUNCTIONARIES, KHADIS AND ULAMAS IN KATSINA STATE.
Assalamu Alaikum Wa Rahmatullah Wa Barakatuh.
I am pleased to be here again in Katsina State and I bring special greetings from the Governing Board, Management and staff of the National Insurance Commission (NAICOM) which is the apex insurance regulatory body in Nigeria.
I am happy for this golden opportunity granted the Commission by His Excellency, Rt. Hon. Aminu Bello Masari to drive insurance/Takaful penetration in the state as we appreciate the Governor and people of Katsina State for this huge turnout to participate in the workshop. I want to assure you that we have assembled the most suitable experts to speak to you on the subject matter.
As we may all be aware, the Insurance Act 2003 and other relevant Laws of the Federal Republic of Nigeria made provisions for certain insurances to be compulsory on us 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.
The main objective of this workshop is to sensitize the top Government functionaries of Katsina State, Khadis and Ulamas on the principles, operations and benefits of the Compulsory Insurances, Takaful and Microtakaful.
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 under listed insurances made compulsory by extant laws to guarantee the protection of the people of Katsina State.
i. Third party motor insurance in respect of all mechanically propelled vehicles that ply the public roads;
ii. All Buildings under construction that are more than two (2) floors;
iii. All Public Buildings including Schools, Offices, Hotels, Hospitals, shopping malls etc.;
iv. Professional indemnity for all medical practitioners and hospitals; and
v. Group life insurance cover by employers for employees where there are more than 3 persons.
vi. Annuity for retirees as provided under the Pension Reform Act 2014
On behalf of the management of NAICOM, I thank His Excellency for his swift response to our request to organise this sensitisation workshop for stakeholders in the state as a window provided for better understanding of Islamic way of Insurance and discussing a way forward for Takaful to thrive in the state.
Beyond this workshop we will also seek to partner on enforcement of compulsory insurances in the state, and we expect the state executive council to assist on the following:
1. Incept the process of enacting state laws to domesticate the compulsory insurances earlier highlighted in conjunction with the state legislature,
2. Ensure adequate insurance of assets and liabilities of Katsina State government
3. Liaise with Takaful/insurance operators to determine product best suited for the government, farmers, private companies, MSMEs and individuals in the state
4. Conduct on the spot awareness and sensitisation campaigns across the state, etc.
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 our traders and the government. 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.
During the Commission’s visit to His Excellency, Governor Aminu Bello Masari, the CFI did mention that going by the population of farmers in Katsina state, it is obvious that the State is a critical stakeholder in increasing insurance penetration and growth of the sector by ensuring that farmers are adequately protected. 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.
The inherent benefits to the people and government of Katsina state were well articulated during the visit of management of NAICOM to the Governor, but let me add that with the introduction of Islamic insurance (Takaful) and Microtakaful 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. We thank you and God bless you.
Long live Katsina State,
Long Live Federal Republic of Nigeria.