NAICOM releases guidelines on building insurance

18.03.2008

The National Insurance Commission (NAICOM) has released guidelines for insuring high rise public buildings under construction.

Mr Fola Daniel, the Commissioner for Insurance announced the development on Monday in Abuja at the launch of Motor Accident Victims Insurance Compensation Scheme (MAVICS).

Daniel explained that the pilot programme for the building insurance scheme would begin in Abuja, Lagos and other major cities.

He said the scheme was in line with the provisions of sections 64 and 65 of the insurance Act of 2003 which has to do with the insurance of buildings.

``The pilot programme for the implementation of the insurance of buildings affects buildings of more than two floors and public buildings under construction,''he said.

On MAVICS, Daniel explained that the scheme provided protection for uninsured vehicles to the tune of N20,000 and N50,000.

He said MAVICS aimed at reducing the rate of accidents on Nigerian roads, and cater for victims of 'hit and run' of uninsured vehicles.

“This insurance is in addition to the liabilities required to be insured under the motor vehicle insurance Act, 1950.

“The 1950 Act makes insurance compulsory for liability for death or bodily injuries caused by motorists to third party, “ he said.

Daniel said despite the provisions of the act, some motorists had refused to obtain the compulsory third party insurance policy.

He said motorists without genuine insurance cover faced a penalty of N250,000 or one year imprisonment or both.