The National Insurance Commission, NAICOM, has come out to say that most assets of the Federal Government are not adequately and appropriately insured.

The Commissioner for Insurance, Mr. Sunday Thomas recently revealed this at a sensitisation workshop for insurance desk officers of Ministries, Departments, and Agencies, MDAs, on the insurance of Federal Government assets and liabilities in Abuja.

According to him, MDAs should take it upon themselves to domesticate and help in the enforcement of compulsory insurances because it is the right thing to do.

He added that it is very important for the government to get value for money in the purchase of insurance by MDAs, and NAICOM is willing to change that narrative.

His words, “It is very worrisome to the Commission that most assets and liabilities of government are never adequately and appropriately insured, which further accentuated the need for urgent measures to be put in place by the Commission to ensure that government gets value for money in the purchase of insurance by MDAs and that it is the desire of NAICOM to change this narrative for good.”

“The essence of insuring government assets and liabilities is to cushion the impact and reduce the burden that the government would have to bear in likely occurrences of catastrophic events such as natural disasters, fire, accidents, building collapse, injuries or death to third parties, etc, thereby saving the government money which can be channelled towards augmenting the needs of the citizenry, providing infrastructure, and creating employment, among others.”

“As you may be aware, NAICOM in 2009, launched the Market Development and Restructuring Initiative, MDRI project which aimed at creation of awareness on compulsory insurance products, education of the public on the long-term benefits of insurance to policyholders and the economy at large, among others.”