Chuks Udo Okonta
The Nigerian Insurance industry seem to have the largest number of compulsory insurance across Africa even as it occupies the third position in the continent.
The large number stemmed from government's efforts to grow the industry, but lack of enforcement of the laws has denied the operators the supposedly benefits accruable from the bogus laws.
While Nigerian Insurance industry parades 12 compulsory insurances, South Africa which has the highest insurance premium income in Africa has four compulsory insurances which are: Motor Vehicle Fund; Unemployment Insurance Fund; Workmen's Compensation and Public Liability Insurance.
The Ghanaian Insurance industry has just two - third party motor and private commercial buildings compulsory insurances.
Commissioner for Insurance Fola Daniel, who spoke on the development said the industry has 12 compulsory insurances which are yet to be fully embraced by the public.
"If you compare our insurance laws with similar laws all over Africa, I think we have the largest number of compulsory insurance such as Motor (Third Party), Group Life, Builders’ Liability, Occupiers’ Liability, Marine Insurance etc. We have 12 compulsory insurances, but these compulsory insurances are just there in the books.
"They are just there as laws, many people are not even aware of it. So what did we do in the last five years? We tried to create awareness. We sensitised Nigerians first about the existence of these compulsory insurances, how it is best as a means of managing our risks than the Ad-hoc assistance we get from government in times of trouble or turbulence or losses, so we have done that over the last five years and I’m glad to say that there is enhanced awareness amongst the populace," he said.
He noted that in spite the challenges the income of the insurance industry in the last seven years has more than doubled, adding that in the year 2007, the industry had an income of slightly N100 billion but as at last year, it posted over N300 billion.
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