By Bisi Bamishe,
In the space of 10days during Covid -19 lockdown in the month of April 2020, there were three major fire incidents that took place in the Federal Capital Territory, Abuja. First was the fire that took place in the office of the Accountant General of the Federation, followed by the Independent National Electoral Commission (INEC) and then Corporate Affairs Commission (CAC). While these offices buildings gutted by fire have nothing in common except that they all belong to the federal government, the timing of the incidents have raised concerns in the public space. People are concerned about how the burnt buildings would be repaired at such time when all available funds in the country were focused on fighting Covid-19 .
According to human rights activists, Joe Okei-Odumakin, ‘money was used to put out the fire, while billions would be needed to repair the burnt edifices’. However, if the buildings were insured, there is no need for federal government to worry because the insurance company that insured them will take care of their repairs. However, if on the other hand, they have no insurance cover amidst Covid-19 pandemic expenses, this is additional headache government must attend to.
Insurance is the act of pooling funds from many insured entities in order to pay for relatively uncommon but severely devastating losses which could occur. Insurance is meant to protect the insured from risk.As a result of its importance, insurance is recognized all over the world. In Nigeria, the government (at federal, state and local levels) is required by Insurance Act 2003 to insure its buildings, properties as well as lives of all its workers. There are six compulsory insurances mandatory for both the government and citizens according to Insurance Act 2003.
These are Motor Third Party Insurance, Builder’s Liability Insurance, Health Care Professional Indemnity Insurance, Occupier’s Liability Insurance, Employee Group Life Insurances and Employer Liability Insurance. Failure to have these compulsory insurance covers is a criminal offense. For example, insurance of public buildings law requires its owner or occupier to be insured against liability for loss or damage. Penalty for non compliance is a maximum fine of N100,000 or one year imprisonment or both. The same law requires every employer of labour with five or more employees to take out a life insurance policy. Failure to comply to the provision which applies to both private and public sectors, is an offense punishable with one year imprisonment or fine of N250.000 or both. Same penalty is for failure to have a motor vehicle third party insurance.
Despite the advantages of insurance, it is unfortunate that non payment of premium as at when due and under insurance have continued to be the two major challenges confronting the government. Government made the law. As the custodian of insurance law, government should be the first to institution to have insurance, stated Tunde Odeyemi, a public relations practitioner. “For example, there should be no government vehicle on the road without motor insurance, at least third party. Also, government buildings especially from two floors above must be insured. Government should obey the law to the letter”, Opeyemi added.
“It is imperative for government to insure and insure adequately”‘, Tope Adaramola, an insurance broker said. According to him, “in line with the prudential guidelines expected in good governance, government must insure because insurance is a risk management strategy. It is a way of preserving government assets”.
Aside the fact that insurance provides peace of mind which is imperative, it is a way of building up investable funds for the government, especially life insurance which is a long term. When such long term funds accumulate, it can be used for developmental purposes like infrastructural development by the government.
The need to secure the welfare of the citizenry is another reason why the government should insure, aside protection of its assets. Government as the custodian of properties and life of its citizens, has the responsibility to protect both because has and uses is the tax paid by the people. Therefore, it has responsibility to the tax payers.
Odeyemi emphasized that the government as the largest employer of labour should ensure that every worker in its employment is insured as well as ensure that every other employers do the same for their workers. “Government should enforce it that organizations with more than five workers should have Group Life insurance for their workers. Government should ensure it has insurance and ensure that provisions of all compulsory insurance is obeyed.
The influence government has on its citizenry cannot be under estimated. If government could insure, it means the citizens would pick up the courage to insure. More so, insurance can serve as a source of motivation to government since there is backup in case of loss. This is because the confidence of every insured in based on the fact that there is something to fall back on in case of accident, damage or loss.
Insurance would continue to be a reliable source of protection of properties, liabilities and lives and be seen as a source that can provide room for consistency in the business or art of governance. If government wants to make adequate projections into the future, it should insure.
