14/07/2020
7 COMPULSORY INSURANCE POLICIES IN NIGERIA.
Did you know that there are seven compulsory insurance policies in Nigeria? Yes, the Federal Government has made it compulsory for individuals and businesses in the country to be protected by a few insurance policies. Here they are:
1. Motor Third Party Insurance: People who have been caught by law enforcement agents while driving, for not having insurance, may be able to relate to this. To ensure the safety of road users, the government has made it compulsory for citizens and residents to have motor insurance before plying public roads. (Premium for Third party only is N5,000 while comprehensive is about 3% of vehicle value)
2. Employee Group Life Insurance: Are you an employer of labour? This is for you. The employee group life insurance requires that every employer of labour with five or more employees must take out a life insurance policy on each of these employees. The sum is at least three times the annual total compensation for the employee and applies to employees in the private and public sectors. (Premium is 6/1000 of sum assured.)
3. Health Care Professional Indemnity: As a patient, are you aware that every licenced health care provider must obtain insurance before treating you? Health care professionals are required to obtain insurance that will protect their patients in case of accidents or fatalities resulting from professional negligence. A health care provider comprises any registered government or private healthcare practitioner, hospital or maternity centre.
4. Insurance of Public Buildings: Did you know that your favourite shopping mall and hangout spot ought to be insured? The law provides that every public building must be insured against liability in the case of loss, damage to property, death or bodily injury that may be caused by collapse, fire, earthquake, storm or flood. A public building refers to any building accessible to people for educational, medical, recreational or commercial purposes.
5. Insurance of Buildings under Construction: Site workers’ lives matter! This is why the owner or contractor of any building under construction with more than two floors, must undertake insurance from the construction stage. The purpose is to guard the public against construction risks that may be caused by negligence on the part of the contractor; resulting in bodily injury, loss of life or property damage.
6. Aviation Third Party Insurance: Fly with cover! Aircraft operators in Nigeria are not permitted to operate without first undertaking this insurance policy. The policy involves three parties namely; the aircraft operators, the insurance company and the third party i.e. passengers, employees and the public at large. The aim is to provide cover in the case of accidental injury, death or property damage to third parties caused directly by the aircraft.
7. Marine Insurance (Cargo): If you’re planning on starting your own container shipping business, this is for you. Individuals and organisations that regularly engage the use of marine transportation are required to obtain marine insurance. It covers for losses that may occur as a result of marine adventures, from the use of vessels and yachts as a means of transportation.
Source: Insurance Industry Campaign
