Compulsory insurances will help government cushion effects of recurring fire inferno—NAICOM

National Insurance Commission, NAICOM, has said that the full implementation of compulsory insurances will help the government cushion the effect of recurring fire inferno in different markets across the country, which has been causing so much economic havoc on traders and the government. Speaking at a sensitisation workshop Katsina Alhaji Abdulrasaaq Salami, Head Corporate Communication and market development of the commission said “One of the cardinal objectives of insurance is to protect us against such natural disasters. We cannot in some cases, stop it from happening but we can pre-empt and minimise its impact. Having the markets and goods insured will ensure stability and comfort for the people and also save the government some cost that ordinarily would have gone into compensating traders. 

“During the Commission’s visit to His Excellency, Governor Aminu Bello Masari, the CFI did mention that going by the population of farmers in Katsina state, it is obvious that the State is a critical stakeholder in increasing insurance penetration and growth of the sector by ensuring that farmers are adequately protected. A partnership with the Commission will be a golden opportunity to assist Katsina state peasant farmers, traders and civil servants when they need it most and for the financial services sector to also increase financial inclusion which is one of the cardinal thrust that has been a forefront policy of the federal government for a sustainable economic development and lifting families out of abject poverty. The inherent benefits to the people and government of Katsina state were well articulated during the visit of management of NAICOM to the Governor, but let me add that with the introduction of Islamic insurance (Takaful) and Microtakaful for small businesses, Katsina state will not be let down by the insurance industry, we indeed need each other to grow. 

“Having Takaful Insurance as an alternative to conventional insurance makes it more beneficial that whatever you contribute is not lost at the end of the year. The Commission has so far licenced Four (5) Takaful insurance companies to operate in Nigeria providing cover for that segment of the population averse to conventional insurance. Some of these Takaful companies are here and have be provided with the opportunity to interface with participants and showcase their respective products”.