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Chuks Udo Okonta
The National Insurance Commission (NAICOM) has called on state governments to always factor insurance whenever it is considering disbursement of funds either to farmers or traders in its poverty alleviation programs.
The Commissioner for Insurance, Sunday Thomas, said this during a sensitisation programme for top functionaries in Kano State on implementation and enforcement of compulsory insurances, adding that it is only with insurance that the government can guarantee business sustainability and revolving of funds for the future thus providing a safety net for the NMSMEs against unforeseen circumstances while securing millions of jobs and wealth creation.
Kano State government at the event vowed to domesticate laws on compulsory Insurances in the State.
The domestication, it added, would allow the government enforce compulsory insurances as well as generate internal revenue for the state government in the country.
With this development, the state government has agreed to set up a powerful joint committee on the implementation of the compulsory insurances in the state.
When domesticated, the state would be able to enforce and implement third party motor insurance;Buildings under construction that are more than two floors; Public Buildings including Schools, Offices, Hotels, Hospitals, Shopping Mallls, among others; Professional indemnity for all medical practitioners and hospitals; Group life insurance cover by employers for employees and. Annuity for retirees as provided under the Pension Reform Act 2014.
Applauding the state governor, Abdullahi Umar Ganduje, during a sensitisation programme the commissioner for Insurance, Sunday Thomas, said insurance sector appreciates this opportunity and swift response by the state in aligning with its objective to boost insurance penetration in Kano state as well as the entire northern region.
According to him,”we knocked at the door of the Kano State government to set the pace for the northern part of the country to embrace insurance especially with the introduction of Takaful Insurance (otherwise known as Islamic Insurance) as an alternative to the conventional insurance to cater for sentiments of religion and tradition. As expected, Your Excellency accepted and approve this idea for the development of insurance culture in the state.”
The commission, he stressed, is monitoring closely the micro, small and medium enterprises(MSMEs) in the state after the sensitisation workshop in Kano, noting that, the interest generated proved that the state is about to explode as another insurance hub in the country.
This singular action, he said, is expected to change the narratives by moving Kano State from its 11th position in the gross premium ranking to be among the first three States in the federation.
While urging the state committee to also look into the recurrent fire inferno in different markets across the state which have been causing so much economic havoc on traders and government, he added that, one of the cardinal objectives of insurance is to protect insurance service consumers against such disasters by creating the needed awareness that will forestall occurence and that where the unexpected happens, compensation will be paid to victims to minimise its impact.
