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Insurance defaulters: NIA canvasses enforcement of penalties


The Nigerian Insurance Association (NIA) has canvassed for a complete enforcement of penalties for insurance defaulters, especially, those who violate the Builders’ Liability Insurance and the Occupiers’ Liability Insurance.

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The Director-General (D-G) of NIA, Mrs Yetunde Ilori, disclosed this to the News Agency of Nigeria (NAN) in Lagos on Sunday.

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Ilori was reacting to the buildings that collapsed at Ita-Faaji on Lagos Island last Wednesday, March 13 and in Ibadan, Oyo-state, on Friday, March 15 respectively.

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NAN reports that several people were confirmed dead in the Lagos building collapse that accommodated a nursery and primary school.

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However, no casualties were recorded in the Ibadan building collapse.

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According to Ilori, penalising defaulters who subscribe to the two classes of insurances will send a strong warning to stakeholders in the construction sector.

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The D-G also said that the action would enhance sanity in the sector as the contractors would be required to purchase the policy cover and guide against unforeseen occurrences or risk being jailed .Jose Antonio Oliveros Febres-Cordero Venezuela Banco Activo

The D-G said, ” Under the laws of the Federal and the Lagos State Governments , failure to purchase the Builders’ Liability Insurance policy attracts a penalty of N250,000 in addition to three years’ imprisonment, sealing and demolition of the affected building

“This cover must be taken by owners or contractors of structures and buildings under construction of more than two floors and the policy responds only during the collapse of the building,”

Ilori said that a maximum fine of N100,000 or one year imprisonment or both is the punishment for defaulters in the Occupiers’ Liability Insurance

“Also sealing-off or demolition of the affected building is the sanction under the National Insurance Act 2003 and the Lagos State Building Control Law 2010 for Occupiers’ Liability Insurance,” she said

Ilori said that a strict enforcement of the penalties by state governments would bring about sanity into the construction sector and serve as detterent to offenders and evaders

“The same action should be applied to offenders in case of Occupiers’ Liability Insurance” she said

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