Amended Insurance Act Ready Next Year- Senator Nwaogu

Chairman, Senate Committee on Banking, Insurance and other Financial Institutions, Senator Nkechi Nwaogu has pledged the determination of the upper chamber in ensuring that the insurance sub-sector occupies its rightful place and compete adequately with other sectors of the Nigerian economy. This is even as she told Daily Champion that the on-going amendment of the 2003 Insurance Act would be concluded early next year.

She spoke yesterday in her capacity as the chairman of the 13th edition of Champion Insurance Day/Luncheon.

She said the Senate found out that there was much ambiguity in the insurance sector hence its decision to amend the industry's 2003 Act and guide against abuse of the system.

She said: "If we are to be among the leading countries in the industry before 2020 we must be serious with this aspect of insurance".

The Abia State born law maker said the two grey areas identified by the Senate in clause 94 of the Act included the capital base of the insurance firms and share increment.

She said another area which requires proper scrutiny was the new building policy which stipulates that all public buildings must be insured.

She asked: "What is a public building? And what constitutes a public building? She emphasized that the position of the senate is that every building must have an insurance cover.

She said since she took over the chairmanship of the Banking/Insurance and other financial institutions one of the issues that has continued to agitate her mind is what should be done to make the public develop interest in insurance, saying" in the western nations insurance sector beget the other sectors, but in Nigeria it is the other way round".

She said in terms of contributions to the Gross Domestic Product (GDP) insurance was presently at a negligible percentage of three.

The law maker stressed that the biting effect of the global economic recession in the last four months points to the fact that the insurance firms should focus more on creation of public awareness about the industry.

On settlement of claims, she said currently there was quick response in payment of claims and commended the insurance firms for the positive development. She urged them to develop new products for the public, pointing out that aviation, oil and gas insurance policies were still being undertaken abroad, asking: "Must we continue in this way, must we remain in the dark? We have a duty to ensure that the insurance industry occupies a prime position in the economy of Nigeria.

"The experts know about the products they are talking about, but how many Nigerians know about this? She asked.

She said the road show which the Central Bank of Nigeria (CBN) governor, Mallam Lamido Sanusi staged in London and other western nations was aimed at ensuring that the banking and insurance sectors did not collapse.

She commended the guest lecturer Mr. Adeyemi Adejumo for the lecture, stressing that the statistics he reeled off call for concern.

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