Lagos — One of the issues currently agitating the minds of operators in the insurance industry is the National Insurance Commissions' (NAICOM) policy and operational guidelines for 2010.

Findings by Champion Insurance revealed that some insurance brokers and agent seems not to be abreast with the new NAICOM directives especially the implementation of the newly designed six compulsory insurance under the Market Development Restructuring Initiative (MDRI).

Some insurance practitioners who spoke on the strength of anonymity said they were yet to grasp the rudiments of the NAICOM guidelines specifically on the compulsory insurance and the establishment of agency system. Infact, only a few of the insurance firms are gearing up to respond to the commissioner for insurance clarion call in this direction.

They admitted that they owe the nation a duty in terms of creation of awareness about the relevance of insurance, saying, the government has a role to enforce the law to the later.

It was in a bid to push for early implementation of the compulsory insurance that the senate committee on banks, insurance and other financial institutions recently convened a one -day conference for the stake holders in the industry.

Among the six compulsory insurance listed by the apex regulatory body -NAICOM for prompt implementation effective January 1, 2010 include; builders liability insurance , occupiers liability insurance and health care professional indemnity.

Others are statutory group life insurance, workmens compensation insurance and third party motor insurance.

According to the NAICOM consult, Mr. Sole Doye who educated the intermediaries on the government expectations regarding the MDRI at a workshop in Lagos late last year

it is the duty of the Nigeria Insurance Association (NIA) tactical committee to attach all the necessary clauses and memos to the policy documents.

Indeed, the compulsory insurance was created under the miscellaneous group in line with section 2 (5), (6) of insurance Act 2003 to enable NAICOM to monitor the impact of the initiative on the entire industry on a year by year basis.

In addition, the creation of the new categories of compulsory insurance was informed by the need for easy understanding of, verification, records, simplified compliance, and computation of stakeholders funds and levies.

Mr. Doye pointed out that effective, 1945 to 2008, insurance had been made compulsory within many laws, regulations and guidelines but compliance level remained below 5.0 per cent, lamenting that fake insurance institutions mobilize higher premiums to the themselves than the insurance industry especially the motor and marine cargo insurance.

Consequent upon this, NAICOM strongly mandated underwriters to issue certificates of insurance to each insured person/organization under the six insurance products.

The underwriters are also requires to take special recognition of section of 69 and 70 of insurance Act 2003 as regards payment of claims on compulsory insurances in particular and all classes of insurance in general amidst adhering strictly to the guidelines.

Contacted, the president Nigeria Council of Registered Insurance Brokers (NCRIB), Dr. Teslim Sanusi said the law was a welcome development, describing it as 'super'.

He assured that NCRIB would support the law to the later because it was fully represented in the committee that worked on the Act 2003 which gave birth to the compulsory insurance.

He declared; "I served on the Act 2003 review committee with Chief Joe Irukwu .So, I support compulsory insurance because it is good for Nigeria, the only thing is that Nigerians are not insurance conscious, abroad, this is something that people will rush at."

Dr. Sanusi asserted that the insuring public would not realize the importance of the compulsory insurance on public buildings and buildings under construction until the unexpected happens.

The NCRIB boss admitted that there is need for mass awareness campaign on insurance and more workshops to educate the intermediaries further on the new laws.

Also speaking, the president Nigerian Registered Insurance Agents (ARIAN), Mr. kingsley Obuvie similarly welcomed the new governments' initiative, saying, "it will expand the market and create public awareness on insurance."

Mr. Obuvie regretted that some of the agents are not well informed about the compulsory insurance though they have a duty to create awareness about insurance.

He supported the call for another workshop on the MDRI for the insurance brokers and agents before the proposed formal launching of the compulsory insurance by NAICOM early March 2010.