Leadership (Abuja)

3 December 2012

Nigeria: Flood Insurance Fund Programme - NIA Seeks Govts' Inputs

Mr Remi Olowude, the President of Nigerian Insurers Association (NIA), yesterday urged all tiers of government to collaborate with the association to set up a National Flood Insurance Fund Programme.

Olowude made the call after his investiture as the 20th President of NIA in Lagos. He said: "The sad reality of the world today is that we are all exposed to all kinds of disasters, natural and man-made."

The NIA president said that the spread of disasters placed on the insurance companies the responsibility to create special pools that would cover risks on oil spillage, transportation and tanker explosion. He said the pool would also address climate change and the associated tragedies caused by flood, earthquake and vagaries of weather.

"It is in the light of this that l call for immediate introduction of flood insurance and catastrophe fund.

"The industry needs to collaborate with the federal, state and local governments to set up a National Flood Insurance Fund Programme," he said. Olowude noted that the scheme would provide insurance cover against property loss from flooding, landslide and rain storm, among others. He added that it would also protect the insured involvement from illiquidity arising from massive claims.

"Government's involvement in the project is necessary because the perils covered were more or less fundamental, and when they occur affect the poor who are usually the major casualties," he said.

Mr George Onekhena, the Deputy Commissioner, Finance and Administration, National Insurance Commission (NAICOM), said NIA should ensure self regulation of its members to drive the industry.

He said "No Premium, No Cover" which the NIA would start enforcing from Jan. 2013 was to put the insurance industry on its toes.

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