There are indications that the insurance industry may not meet the N1trillion premium income target set for year 2020, following the refusal by many states to implement Group Life Insurance for their workers.

This would force the industry to shift, for a second time, the target year for this landmark opportunity, having failed the earlier 2012 target date.

The Guardian, reliably gathered that despite efforts by government to partner the 36 states of the federation, including the Federal Capital Territory (FCT), to meet the target, some states are still having challenges on how to pay salary of their workers.

Insurance industry is currently generating about N300 billion yearly premium, which is considered meagre, considering a huge population of 180 million people, with majority of them exposed to daily hazards.

The partnership, spearheaded by the National Insurance Commission (NAICOM), will however, ensure that all the 36 state governments domesticate insurance in their respective state laws.


Moreover, it was learnt that if this could be achieved, each state could be generating about N30 billion premium yearly for the insurance industry, which would, in turn, allow the federal government meet its N1 trillion premium target soon.

Already, NAICOM is holding talks with four states that will serve as pilot states, with a plan to extend it to other states as time progresses.

The four states are Lagos, Ogun, Gombe and Kaduna, which are to domesticate insurance laws in their respective territories, in a bid to enforce the five compulsory insurances at the state level.

With such domestication, The Guardian findings revealed that the Federal Government can now deploy the state apparatus to enforce the five compulsory insurances in the adopting states.

Investigations also showed that state agencies like the Environmental Sanitization Board, revenue generation board, Fire Brigade, among others, would be deployed to enforce builders’ Liability Insurance, as there are plans to raid shops, filling stations and houses to ensure that they have adequate insurance cover.

The move will also ensure that all public buildings are comprehensively insured.

The Federal Road Safety Corps (FRSC) and the states’ Vehicle Inspection Offices (VIOs) on the other hand, would be used to enforce comprehensive and third party motor insurance policies.

To this end, the insurance industry would be generating billions of naira on a monthly basis from these states, while it would also improve the Internally Generated Revenue (IGR) of the adopting states, allowing the insurance industry to eventually realise its N1 trillion insurance premium target.

Speaking exclusively to , NAICOM’s Commissioner for Insurance, Alhaji Mohammed Kari, said: “If we sign a Memorandum of Understanding (MoU) with Lagos State government, which we are almost finishing, Lagos State will use the environmental sanitization agency, revenue generation and Fire Brigade, to enforce insurance adoption.

“So, you can see now how much this will bring to state and insurance industry as well”.

The Fire Brigade, Kari explained, is empowered by law to enforce building insurance and the agency, alongside the states’ inland revenue agencies, will be visiting organisations, offices, shops, filling stations and houses to request for their insurances.

“They will visit your place and ask you to show your evidence of insurance and if you can’t provide that, they will fine you for not insuring. That is under their law. They will seal your business and you will continue paying fines every day till you have insurance. We have finished arrangement with the Fire Brigade.

“At the state level, we are going to go through their environmental Sanitation Board, Inland Revenue Board, among others, to check insurance, and that is why we need to have offices in those states. Any public building or property ought to have insurance and fire brigade will help us enforce this,” he said.

Also speaking in an exclusive interview with The Guardian, the Executive Secretary/Chief Executive Officer, Nigerian Council of Registered Insurance Brokers (NCRIB), Fatai Adegbenro, charged federal, state and local governments to lead by example by insuring all their assets, including public buildings, to increase insurance penetration and profitability.

Government, according to him, should lead in the implementation of the ‘No Premium, No Cover’ policy by insuring all its buildings, while making budgetary provisions for insurance of its Ministries, Departments and Agencies (MDAs).

“Instead of budgeting funds that could have been used for developmental purpose for compensating victims of mishap or natural disaster, insurance is the best alternative, as there is no amount of intervention that could return the victims back to their financial status before the disaster struck, except insurance,” he said.

According to him, this would boost the premium income of the insurance industry and allow it meet the N1 trillion-premium income target.

https://www.akelicious.net/2019/03/why-fg-may-not-meet-n1-trillion.html

So in essence another tax?

One question, how much increase has this government brought into the standard of living of the average Nigerian between 2015 & now that they are in conjunction with group life on insurance taxing?. its obvious the N30,000 minimum wage increase is coming with VAT hike at 7.5% or 10%...

How fruitful is the NSITF, or would this join the league of looting loopholes and expense heads?

What have we gained other than violence, thuggery and a dormant leader?

I guess our current Political Leaders lacks Creativity

Esseite:
So in essence another tax?

One question, how much increase has this government brought into the standard of living of the average Nigerian that they are taxing?. its obvious the N30,000 minimum wage increase is coming with VAT hike at 7% or 10%...

What have we gained other than violence, thuggery and a dormant leader?

if you dont understand why comment

The insurance industry should make it business attractive to Nigerians and stop trying to use government as an 'enforcer' to intimidate Nigerians into buying fake policies.

How many time has a common Nigerian with insurance policy gotten help when time are hard?

BlacSmit:
The insurance industry should make it business attractive to Nigerians and stop trying to use government as an 'enforcer' to intimidate Nigerians into buying fake policies.

How many time has a common Nigerian with insurance policy gotten help when time are hard?

You've said it all!
You are so on point.

The populace need to be educated on the ins n outs of insurance and the concept of paying premiums. Without proper education n honesty on Thier part, they should forget about any hitting any target

BlacSmit:
The insurance industry should make it business attractive to Nigerians and stop trying to use government as an 'enforcer' to intimidate Nigerians into buying fake policies.

How many time has a common Nigerian with insurance policy gotten help when time are hard?

I fault your above write up, gone are the days were claims get swept under the carpet. With Naicom yiu can report any defaulting underwriter that is refusing to settle your claims after proper documentation.

Or better still buy your insurance products from a broker who is in a better position to fight for you.

If you know the importance of group life policies, you'll nail any state government who had failed to implement it.

ednut1:
if you dont understand why comment

You are empty... its obvious..

nymphomaniac:
The populace need to be educated on the ins n outs of insurance and the concept of paying premiums. Without proper education n honesty on Thier part, they should forget about any hitting any target

The same government that will nail any private firm for not having gruop life insurance policy and pension schemes for its members is the same government that is defaulting in making sure that at all levels her employees have a fom of care package for any unforseen circumstance that befall them while carrying out their duties.

The above should ring a bell to Nigerians, there are alot of campaigns carried out by Naicom on the radio to educate the populace on the need to buy insurance.

Any further issue, talk l to a broker.

Esseite:


You are empty... its obvious..

perfect description for you. Them dey discuss insurance ur talking tax lol.

ednut1:
if you dont understand why comment

It’s obvious he doesn’t - but you could have educated him.

Esseite:
So in essence another tax?

One question, how much increase has this government brought into the standard of living of the average Nigerian between 2015 & now that they are taxing?. its obvious the N30,000 minimum wage increase is coming with VAT hike at 7.5% or 10%...

How fruitful is the NSITF, or would this join the league of looting loopholes and expense heads?

What have we gained other than violence, thuggery and a dormant leader?

Insurance is not tax.

If you are privileged to build a house, own a car, or any property whatsoever - like shops etc. You insure it from risks. For instance, if the house gets burnt or car damaged as a result of accident - the insurance company rebuilds or purchases a new car for you.

So in essence - it has nothing to do with the Government taxing you, it’s just in your best interest to insure your properties.

Funny enough you can insure your life, your children’s education, or even insure a contract you are about going into.

There are different policies and Nigerians should particularly be encouraged to insure their lives and children’s education- anything can happen to any of the parents.

Yur own responsibility is only to pay Premiums - and that’s why you may need a broker to help you with the best insurance policy.

Hope that helps!

Venerable612:


It’s obvious he doesn’t - but you could have educated him.



Insurance is not tax.

What is insurance premium tax then?... half baked, get enlightened... there is a world out there outside Nigeria.

The partnership, spearheaded by the National Insurance Commission (NAICOM), will however, ensure that all the 36 state governments domesticate insurance in their respective state laws.

Is this not a statement showing they are in team with the government?

ednut1:
perfect description for you. Them dey discuss insurance ur talking tax lol.

If you dont know insurance is a form of tax, then i cant really help you read and research on insurance tax or insurance premium tax.

And moreover if you read the article, you would see its inconjunction with federal ans state government..

Esseite:
So in essence another tax?
One question, how much increase has this government brought into the standard of living of the average Nigerian between 2015 & now that they are in conjunction with group life on insurance taxing?. its obvious the N30,000 minimum wage increase is coming with VAT hike at 7.5% or 10%...

How fruitful is the NSITF, or would this join the league of looting loopholes and expense heads?

What have we gained other than violence, thuggery and a dormant leader?

Insurance is not a tax , it is a money set aside in the event of theft, a fire outbreak etc. If such even happens the insurance company will reimburse you or replace your damaged item. Insurance is a strategy to reduce loss and protect against risk in the event such terrible things happen.

Stalwert:


Insurance is not a tax , it is a money set aside in the event of theft, a fire outbreak etc. If such even happens the insurance company will reimburse you or replace your damaged item. Insurance is a strategy to reduce loss and protect against risk in the event such terrible things happen.

Insurance is a tax....

"A tax is a mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund various public expenditures. A failure to pay, along with evasion of or resistance to taxation, is punishable by law"

If they are in team with the govt, its taxing and no longer optional.

Esseite:


Insurance is a tax....

"A tax is a mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund various public expenditures. A failure to pay, along with evasion of or resistance to taxation, is punishable by law"

If they are in team with the govt, its taxing and no longer optional.

Dude can you name any tax that when you lose an item you are reimburse for the lost item. Soon you would call driver's license a tax, vehicular registration a tax, pensions scheme a tax , the worst ignorance is usually done with so much certainty.

Esseite:


Insurance is a tax....

"A tax is a mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund various public expenditures. A failure to pay, along with evasion of or resistance to taxation, is punishable by law"

If they are in team with the govt, its taxing and no longer optional.

Things would be better if people actually listened. You have several people teaching you stuff, so they can't be all wrong. Why not listen, or better still, look it up.
Contributions to approved pensions, retirement benefits funds are all tax deductible as well as PREMIUM on life policies. 100%. It actually reduces your tax burden and doesn't add to it. There's no crime in learning.

Esseite:
So in essence another tax?

One question, how much increase has this government brought into the standard of living of the average Nigerian between 2015 & now that they are in conjunction with group life on insurance taxing?. its obvious the N30,000 minimum wage increase is coming with VAT hike at 7.5% or 10%...

How fruitful is the NSITF, or would this join the league of looting loopholes and expense heads?

What have we gained other than violence, thuggery and a dormant leader?

Insurance is not tax! Insurance is very necessary for us, I mean citizens to be protected against unforseen things. None of these laws are new, they are not just enforced. Those who made the law know they will benefit the society, let us give kudos to those willing to enforce it

Stalwert:


Dude can you name any tax that when you lose an item you are reimburse for the lost item. Soon you would call driver's license a tax, vehicular registration a tax, pensions scheme a tax , the worst ignorance is usually done with so much certainty.

Vehicle registration is really a tax! It can also be argued that driver's license is also a tax that allow you to drive legally

Stalwert:


Dude can you name any tax that when you lose an item you are reimburse for the lost item. Soon you would call driver's license a tax, vehicular registration a tax, pensions scheme a tax , the worst ignorance is usually done with so much certainty.

Yes your drivers license is a form of tax, managed by the joint tax board inconjunction with the FRSC...

Vehicle reg is a tax aswell still under JTB.. aswell as your pension. Its called pension tax.

Read and research dude..

mfm04622:


Insurance is not tax! Insurance is very necessary for us, I mean citizens to be protected against unforseen things. None of these laws are new, they are not just enforced. Those who made the law know they will benefit the society, let us give kudos to those willing to enforce it

Insurance is a form of tax... and yes it may be essential to a people who receive tax benefits in same measure likewise.

Esseite:


Insurance is a form of tax... and yes it may be essential to a people who receive tax benefits in same measure likewise.

I can see others have tried to educate you. Since you have refused to learn, I have no option than to leave you alone

How can someone who can read & write say insurance premium and Pension are Tax! So many educated illiterates! SMH!.



Moving ahead, I am very surprised the insurance industry cum regulator can include Lagos State in any insurance pilot scheme when Lagos State under Ambode didn't procure compulsory group life policy since the expiration of the scheme effected by Fashola's regime. All LASG deceased beneficiaries from November 2015 have been wallowing in suffering as no death benefit will be paid to them (one of the reasons he had to give the family late LASTMA staff #10m or so).

It was shocking to see PENCOM publicized 3rd Sept 2018 that Lagos State has a valid group life policy! Our regulators are either compromised or complacent.

The committee formed by Ambode on compulsory insurance have been using the office to enrich themselves without anything done in over 3years.

If NAICOM is serious, they should approach Akwa Ibom, Cross River, Rivers states. Akwa Ibom has a former bank ED as governor and should appreciate the importance of insurance.

In my own view, the Insurance industry needs to chart their course without government and government patronage (most govt transactions are terrible businesses to their bottom lines).

Insurance in Nigeria today is real. I mean real in its sense. Why? You may ask. There are registers insurance brokers all over Nigeria. They have a body known as Nigerian Council of Registers Insurance Brokers (NCRIB). I currently do my insurance with a broker. If you permit me to mention the name. It is Orange Insurance Brokers Limited. See their website: https://www.oibl-nigeria.com. No one should doubt insurance again o!

Sorry I mean Registered Insurance Brokers.