INSURANCE

If there’s one area we need to be educated on and take with great importance in this part of the world, it is insurance. All over the world from Asia, Europe, America insurance is what citizen result to for compensation. Apart from death which the deceased cannot get compensation on directly, as we all know it is an act of God, all other things like motor accident, fire accident, loss of property, even phones they are adequately compensated.

Following the fire outbreak at Great Nigeria house,Balogun,Lagos yesterday we must have learnt from it that there’s need to insure our properties against fire and some other natural disasters.

The National Insurance Commission (NAICOM) in pursuance of National Insurance Act 2003 in an attempt to enforce if not all some insurance policies, made compulsory some insurance policies under various Nigeria statue which if not put in place will amount to its breach and will be fully enforced and penalties will be awarded against defaulters.

The compulsory insurance policies are six (6) in number; we shall be discussing their usefulness one after the other.

STATUTORY GROUP LIFE INSURANCE; Section 9(3) of the pension reform act mandatorily require all employers to make group life insurance premium payment to maintain life insurance policy in favor of the employee for a minimum of three times the annual total emolument of the employee.

This is solely to the advantage of the employee so as to have something to fall back  on in-case of unexpected retrenchment or retirement.

MOTOR THIRD PARTY INSURANCE;  section 68 of the insurance act and section 3 of the motor (third party) insurance state that no person shall use or cause to permit any other person to use a vehicle unless such vehicle is insured against damage to the property of third party. This insurance policy is to protect the interest of an innocent third party who suffers from the negligence of the person driving the vehicle i.e. death, accident

HEALTH CARE PROFESSIONAL INDEMNITY POLICY: All health care providers in Nigeria must compulsorily obtain and retain indemnity insurance cover from an Assurance approved by the National Health Insurance Scheme (NHIS)

TAX BENEFITS OF INSURANCE; This  are tax deduct able in the computation of the tax payable by the employer and employee under the various legislation in Nigeria.

BUILDER’S LIABILITY INSURANCE: A builder of real property that is more than two floors must compulsorily register and insure such building against risk. This is to protect the builder servants, agent or consultants which negligence may result in bodily injury or loss of life or damage to property.

OCCUPIER’S LIABILITY INSURANCE; Section 65 of the Insurance Act requires all public buildings to be insured against various hazards i.e. earthquake ,fire etc this is applicable to schools, hostels, hotels, recreation centers and many more.

All the above mentioned and explained insurance policies are important and compulsory and does not mean other insurance policies like education trust, life insurance etc are not important too, it was because of people’s attitudes toward insurance that made them make the above mentioned ones mandatory and enforceable .You have a right to enforce them through the use of a lawyer.

Thank you.

Oyenike Alliyu-Adebiyi LLB (hons)BL