The National Insurance Commission (NAICOM) has reinforced its dedication to enforcing mandatory insurance coverage for public buildings and those under construction in Nigeria. This initiative forms a crucial part of the Commission’s broader strategy to enhance safety, promote effective risk management practices, and ensure regulatory compliance within the country’s built environment. NAICOM’s focus on compulsory insurance aims to mitigate potential financial losses and protect lives and properties against unforeseen events such as fire, structural collapse, and natural disasters.
To further this objective, NAICOM convened the 4th meeting of the Joint Committee on Insurance for Public Buildings and Buildings Under Construction. This committee comprises representatives from various stakeholders, including the insurance industry, fire service, quantity surveying profession, and relevant regulatory bodies. The meeting served as a platform for reviewing the progress of implementation and enforcement efforts related to compulsory building insurance. Discussions centered on strategies to improve compliance, data sharing, and public awareness of the legal requirements surrounding building insurance.
Ekerete Gam-Ikon, the Deputy Commissioner for Insurance (Finance and Administration), chaired the meeting and emphasized the importance of collaborative efforts among different agencies to guarantee successful implementation. He highlighted the Commission’s phased approach to enforcement, starting with third-party motor insurance and now extending to public buildings and those under construction. Gam-Ikon stressed the critical role of the Development Control unit in establishing a comprehensive database of public buildings and ongoing construction projects to facilitate effective monitoring and enforcement. He advocated for insuring only buildings with approved documents to prevent situations where structures lacking proper regulatory clearance are insured. This careful approach aims to ensure that all insured buildings meet the required safety and construction standards.
Other key stakeholders, including the Nigerian Insurers Association and the Federal Fire Service, contributed to the discussions by emphasizing the necessity of thorough documentation, comprehensive risk assessments, and adequate insurance coverage before the approval and issuance of building insurance policies. These prerequisites are intended to minimize potential risks and ensure that insurance policies accurately reflect the value and potential hazards associated with each building. This collaborative engagement underscores the shared responsibility of all stakeholders in fostering a culture of safety and risk management within the construction and building management sectors.
Talmiz Usman, the Director of Legal Enforcement and Market Development at NAICOM, expressed gratitude for the committee members’ participation and unwavering support, recognizing their crucial role in achieving the Commission’s objectives. He underscored the collective responsibility to strengthen the enforcement of compulsory building insurance as a vital measure to safeguard lives, protect assets, and secure investments in the built environment. This emphasizes the long-term benefits of enforcing compulsory insurance, contributing to economic stability and sustainable development within the country.
The meeting concluded with renewed commitments from all participating parties to enhance compliance with the building insurance regulations, improve data sharing mechanisms among relevant agencies, and raise public awareness regarding the legal requirements for building insurance. This concerted effort aims to create a more robust and resilient built environment by ensuring that all public buildings and those under construction are adequately insured against potential risks. It also reflects NAICOM’s commitment to proactive regulation and its collaborative approach to achieving its mandate of protecting policyholders and promoting the stability of the insurance industry. In addition to these efforts, NAICOM also recently unveiled a revised regulation concerning insurance for leased and financed aircraft in Nigeria, further demonstrating its commitment to comprehensive risk management within various sectors of the economy.
