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Chuks Udo Okonta
Insurance Practitioners have debunked the claims by some members of the public that insurance of public buildings would lead to an increase in rent.
Some members of the public have been expressing misgivings over sections of the recently signed Nigerian Insurance Industry Reform Act (NIIRA) 2025, which states that owners of houses should have occupiers’ liability insurance policies.
Section (1) of the NIIRA stated that every public building shall be insured against the hazards of collapse, fire; earthquake; storm; flood and such other hazards as the commission may determine.
This Policy covers the legal liabilities of an owner or occupier of premises in respect of loss of or damage to property or bodily injury or death suffered by any user of the premises, third parties and members of the public in the event of building collapse, fire, earthquakes, storm or flood.
This policy is made compulsory by section 76 of the NIIRA and it protects the owner or occupier of the public building against legal liabilities to the third parties.
According to Section 76 (6) of the NIIRA, public buildings includes a tenement house of more than one floor, hotel, a building occupied by tenant; lodger or licensee and any building to which members of the public have access for the purpose of obtaining education or medical service or for the purpose of recreation; or transaction of business
On penalty for defaulters, the Act said any owner or occupier of premises who contravenes the provision of this Section commits an offence and is liable on conviction to a fine of at least N1 million or imprisonment for a term not exceeding 12 months or both.
The President Nigerian Council of Registered Insurance Brokers (NCRIB) Babatunde Oguntade, said the insurance of public buildings won’t impact on rent as the premium to be paid would be little.
According to him the premium may be one per cent of the value of the house to be insured.
He submitted that the benefits far outweigh the premium, whilst imploring the public to embrace the policy to secure their assets.
The former Director of the National Insurance Commission (NAICOM) said the insurance of public buildings may have only minimum impact as the premium will be insignificant.
Immediate past Chairman Nigerian Council of Registered Insurance Brokers Lagos Area Committee (NCRIB LAC) Ademola Olutusin, said the fear that insurance of public buildings would impact rent, shouldn’t be as the premium to be paid won’t be much to warrant increase in rent.
He called for more education to enable the public to be abreast with provisions of NIIRA 2025.
Our investigation revealed that NAICOM is working on the guidelines that will assist in the underwriting of the policy.
