NAICOM urges NCAA on airlines’ insurance with local operators
The National Insurance Commission (NAICOM) has called on the Nigerian Civil Aviation Authority (NCAA) not to allow airlines in Nigeria violate the local content law and insurance law by placing their insurances abroad.
The development will not only stop capital flight but also deepen insurance business and increase its contributions to the nation’s gross domestic product (GDP).
Commissioner for Insurance, Fola Daniel, who spoke at the Seminar for Insurance Correspondents organised by the regulator in Uyo, Akwa Ibom State, said airlines that insure abroad contravenes the Nigerian Content Development Act and Insurance Act. which require that all domesticated businesses must be insured with local operators.
He urged insurers to be at the driver’s seat to ensure that the airline business is not taken out of the country.
He said: “Any airline that insures its business out of the country has offended the Nigerian Content Development Act, and even if we leave that development Act, which is an Act of Parliament that came in 2010, there is Insurance Act, which requires that all domesticated businesses must be insured with us.”
He said the NCAA should ensure that no aircraft fly without appropriate insurance.
According to him, every airline is supposed to have an insurance policy that is issued locally, adding that underwriters having secured the risk can spread it abroad as insurance is an international business.
He said: “Insurance is an international business; it is about spreading risks; we cannot keep all the risks here. But there is now a good working arrangement between us and the NCAA to ensure that there is zero tolerance on non-observance of these rules and laws.
“They have been proactive in sending to us every certificate of insurance deposited with them for us to authenticate and confirm their genuineness. We are working very smoothly with them to ensure that we do not have aircrafts flying without the issuance of appropriate insurance.”
Guidelines by the Commission on the Local Content Act and Insurance Act state that a person or organisation that intends to insure any property in Nigeria, must place such insurance with insurers registered in accordance with the Insurance Act 2003 who may, subject to the Commission’s approval, reinsure the excess overseas where the local industry lacks the capacity to retain the risk.
It further stated that no person or organisation shall transact an insurance or reinsurance business with a foreign insurer or reinsurer in respect of any life, asset, interest or other properties in Nigeria, classified as domestic insurance unless with a company registered under the Insurance Act 2003. Commissioner for Insurance, Fola Daniel told The Nation
This post was originally published on this site