NAICOM Advises Churches, Mosques to Insure Properties

Commissioner for Insurance, Mr. Fola Daniel

Nnamdi Duru

Concerned about the collapse of five storey guest house owned by the Synagogue Church of all Nations, the National Insurance Commission (NAICOM) has advised Nigerians to take seriously the issue of compulsory insurance of public buildings.

Commissioner for Insurance, Mr. Fola Daniel, who gave this advice, in a statement signed by the Assistant Director in charge of Corporation Affairs at the commission, Mr. Rasaaq Salami, urged Nigerians to protect their financial assets by insuring them.

The commissioner who commiserated with relatives and victims of the collapsed building said the incident underscored the need for Nigerians to as a matter of urgency, take compliance with provisions of the compulsory building insurance seriously.

“The Commissioner for Insurance, Mr. Fola Daniel sympathises with families of victims of the collapsed Synagogue church building in Lagos.  He urges Nigerians to insure their risks against unforeseen disasters as this,” the state added.

According to the commissioner, even though the insurance of public buildings is not mandatory for churches, mosques and other places of worship, such organisations should endeavour to cover their liabilities with regard to third parties on this platform.

“Insurance of public building is compulsory in Nigeria as defined in Section 65 of the Insurance Act, 2003 except places of worship.  However, Daniel advises that mosques and church leaders consider insurance of their buildings to mitigate risks in the interest of innocent third parties,” the commission said.

Otherwise known as “Occupiers Liability Insurance,” the insurance of public buildings, whether owned by individuals or government; is mandated by the Insurance Act, 2003 and the Lagos State Building Control Law, 2010.

Section 65(1) of Insurance Act, 2003 provides inter alia: “Every public building shall be insured with a registered insurer against the hazards of collapse, fire, earthquake, storm and flood.”

The Act defines public building “as tenement house, hostel, building occupied by tenants, lodger or licensee and any building to which members of the public have ingress and aggress for the purpose of obtaining educational or medical service, or for the purpose of recreation or transaction of business.”

Also schools, cinemas, hospitals, malls, petrol stations, eateries, restaurants, internet cafes, shopping malls, etc are classified as public buildings too with the exception of churches, mosques and other places of worship.

Occupiers’ liability insurance covers the legal liability of the owner or occupier of a premises in respect of loss or damage to property or bodily injury or death suffered by any user of the premises and other third parties as a result of building collapse, fire, earthquakes, storm or flood.  The penalty for non-compliance is N100, 000 plus 1 year imprisonment and sealing-off or demolition of the building.

Related to the compulsory public building insurance is the insurance of buildings under construction, otherwise known as “Builders’ Liability Insurance.”

Section 64(1) of the Insurance Act, 2003 provides that “no person shall cause to be constructed any building of two floors without insuring with a registered insurer his liability in respect of construction risks caused by his negligence or the negligence of his servants, agents or consultants which may result in bodily injury or loss of life to or damage to property of any workman on the site or of any member of the public.”

Chairman of the Nigerian Insurers Association (NIA), Mr. Godwin Wiggle, said the cost of builders’ liability insurance is minimal.

“It is very minimal, about 0.2 per cent of the value of the property and on the average for the life of that construction, may be N100,000 to N150,000.  It however depends on the risks that are applicable to the property,” he stressed.