BY COBHAM NSA – Determined to further enhance the economic viability of Kano State, the administration of Governor Abdullahi Ganduje is offering compulsory insurance coverage as part of the incentive package to attract foreign investments into its domain.
According to the State government, leveraging on its entrenched insurance culture will give investors the needed confidence to do business and explore the huge investment opportunities in the North West state.
Addressing a three-day retreat for members of the Technical Committee on implementation of Third Party Liability and other insurances in Kano State in Abuja on Thursday, Governor Ganduje said his administration “is exploring and promoting insurance culture in the state to, among others, encourage Foreign Direct Investment (FDI).”
He said; “In the long run, they (investors) will have to be insured as well and that will give them the safety required in case of any eventuality”.
The Governor, represented by Secretary to the Kano State Government, Alhaji Usman Alhaji, explained that the compulsory insurance policy; “is deliberate because we know that in the long run, we stand to mutually benefit: the insurance companies; the State government and the people of Kano.”
Additionally, he said the policy represents the government’s conscious efforts “to make Kano a better state, develop economically and move to the next level”, adding that it will also protect “the people of the state and their businesses, by ensuring they are insured and in the event of any eventuality, they can get relief”.
He expressed confidence that the development will aid improved Internally Generated Revenue (IGR) in the state “so that we can continue to deploy it into other sectors of development as well as help government fulfill its number one obligation which is protecting the life and property of our people.”
Governor Ganduje said; “In the event of any unfortunate circumstance, then we know that we will have taken the necessary steps to get relief for the families of people and of course, owners of businesses.”
In his remarks at the event, Commissioner for Insurance and Chief Executive Officer of National Insurance Commission (NAICOM), Mr Sunday Thomas, applauded the Kano state government on the insurance policy, saying it only goes to prove that insurance could indeed thrive everywhere in the country.
The NAICOM boss said the Kano insurance policy would help the state “generate more revenue and serve as social protection mechanism that would assist both government and citizens in the event of any disaster”.
Assuring that the obligatory insurances in the state would be “the third-party motto insurance covers in respect of all mechanically propelled vehicles that ply public roads”, Mr Thomas said; “The liability insurance cover in respect of all buildings under construction that are more than two floors.
“Also, all public buildings and these include schools, offices, hotels, hospitals, market shops, shopping malls, and all of that. Professional indemnity for all medical practitioners and hospitals in Kano state.
“Group Life Insurance for all employers of labour that employ more than three persons and annuity for retirees as provided under the pension reform act as an option. As one of the leading commercial nerve centres in our country, with a huge population and business potential, the adoption and enforcement of these compulsory insurances will no doubt boost insurance premium income in the country.”
“It will create thousands of employment opportunities in the state, improve the standard of living of the people and increase the state’s internally generated revenue”, he said.
The NAICOM Chief Executive explained that the retreat’s objective was to equip the Committee members with requisite information and knowledge to maximize opportunities that would help grow and develop insurance culture among Kano state citizens.
But beyond the compulsory classes of insurance, Thomas said the Committee would be tutored to appreciate and exploit the benefits of insurance by encouraging individuals or corporate entities in the state to embrace other non-mandatory insurances.
Giving further insight on the policy focus, the NAICOM chief said the idea is to adopt an all-inclusive approach to the drive for insurance uptake in addressing most of the sentiments against insurance in our society.
Consequently, he said this would be undertaken “either through Takaful insurance, otherwise known as Islamic insurance, or Micro insurance which caters for the low-income earners who constitute larger percentage of the population and businesses.”
