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Chuks Udo Okonta
The National Insurance Commission (NAICOM) has said it is poised to ensure removal of huge unnecessary expenditures from government annual budget arising from avoidable losses.
The insurance industry regulator stated this as one of the objectives for issuing the guidelines for Insurance of Government Assets and Liabilities for Ministries, Departments and Agencies of Government and Other Stakeholders.
NAICOM noted that it would also ensure adequate protection of Government strategic assets; ensure adequate transfer of insurable risks to insurance companies; preserve the resources of Government entrusted with Ministries Departments and Agencies (MDAs) for developing projects and other financial activities and propel economic growth through insurance by protection of assets and avoidance of liabilities.
The insurance industry regulator submitted that it would protect public members against unfortunate events and calamities and provide financial assistance in the event of unfortunate incidents and ensure removal of huge unnecessary expenditures from government annual budget arising from avoidable losses.
NAICOM stated that as an adviser to Federal Government of Nigeria on insurance related matter, it observed challenges on the insurance of Government Assets and Liabilities which has led to avoidable expenditure by the Government.
It maintained that consequently, in exercise of the powers conferred on it by the provisions of National Insurance Commission Act 1997, Insurance Act 2003 and all other powers enabling it in that behalf, The National Insurance Commission with the approval of the Honorable Minister of Finance and Coordinating Minister of the Economy issues the “Guideline on the Insurance of Government Assets and Liabilities” as minimum set of requirements for insurance of government assets and liabilities and in pursuance to the Circular issued by the Secretary to the Government of the Federation (SGF) and NAS Resolution Referenced
NAS/CAN/35/VOL.1/539 22.
NAICOM stated that the guideline shall apply to all activities incidental to insurance of assets and liabilities of the government of the Federal republic of Nigeria.
It maintained that all MDAs and relevant stakeholders are required to comply with provisions of the guideline.
