Lagos- The Insurance Consumers Association of Nigeria (ISCAN) on Thursday appealed to the National Insurance Commission (NAICOM) to enforce Occupancy Liability Insurance (OLI).
The News Agency of Nigeria (NAN) reports that the OLI is one of the six insurance products made compulsory by the Insurance Act, 2014.
Mr Yemi Soladoye, the ISCAN National Technical Adviser, made this appeal in an interview with the News Agency of Nigeria (NAN) in Lagos.
According to him, enforcing the OLI will ensure that 0.25 per cent of insurance premium is deducted and made available to the fire services as fire grant.
“Session 65 (4) of Insurance Act 2014 stipulates that each insurance company that sells Occupancy Liability Insurance product must deduct 0.25 per cent and remit it to NAICOM.
“NAICOM is to manage the fund as grant or to buy equipment for firefighting agencies in each state.
“This aspect of the compulsory insurance has not been enforced although insurance companies are selling the products.
“Enforcement is necessary to boost premium from where insurance companies will deduct the 0.25 per cent as grant for the fire fighting agencies,’’ he said.
Soladoye said that the Lagos State Government had helped insurance consumers by supporting the fire service with 34 trucks and fire fighting regalia.
He said that the fire service offices would be more equipped with the 0.25 per cent fire grant.
According to him, to ensure this, the association is collaborating with the Lagos State Government and the state fire service.
Soladoye said that the state government had set up a committee to ensure that victims of fire incidents, flooding and building collapse got compensation as provided by the law.
He said that under the Insurance Act 2014, when an insurance company perpetually failed to remit the grant, it could be a ground for NAICOM to revoke its operating licence. (NAN)