The federal government has been urged by risks underwriters in the country to make the fire insurance and associated liability compulsory.

Operators in the industry are specifically seeking the review of section 65 (3) of the Insurance Act 2003.

The Nigerian Insurers Association (NIA) said the compulsion of fire insurance and associated liability would make more funds available to the government and increase the funding potential of the federal fire service.

The Chairman of NIA, Mr Ibidolupo Balogun, said in a paper titled: “Fire Prevention, Mitigation and Evacuation: The Insurance Perspective” that inadequate funding, reckless installation of gates within most communities and use of obsolete equipment as being responsible for the inability of federal fire service to effectively perform its duties in checking fire incidents in the country.

Mr Balogun recommended the establishment of state fire service to complement the efforts of the federal government since each state has its peculiar needs.

He said: “No one should expect Lagos with a high number of high-rise buildings to have the same need for fire services as Ebonyi State or Nassarawa State.”

He noted that fire prevention is critical to modern-day business as home appliances and office equipment could trigger fire out break, and added that as a result of the dangers posed by such equipment, it is imperative for the adoption of risk prevention techniques and mitigation for the evacuation of victims of fire disasters. Meanwhile the association had pledged to work towards greater cooperations with agencies of government for the development of the industry.

The NIA boss pledged to work with the National Insurance Commission (NAICOM) and the economic team of the government to actualise provisions of the Insurance Act, 2003.

He noted that Nigeria has greater demand for insurable risks, even as he listed the challenges of the industry as including the Pension Reform Act, National Health Insurance Scheme, Financial Sector Scheme, Nigerian Local Content Policy on oil and gas, insurance awareness and penetration, insurance of public buildings and buildings under construction and employer compensation bill.

Mr Balogun pledged that the association would continue to respond to such challenges to enable the sector play its constitutional role in the growth and development of the nation’s economy.

“This great nation has a demand for insurance risk that far outstrips the supply of underwriting capacity.

It is our desire during our tenure to work closely with our regulators, NAICOM and the economic reform team of federal government to actualise and maximise the benefits derivable from the provisions of the Insurance Act 2003,” Mr Balegun said.

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The Tide Online is published by Rivers State Newspaper Corporation