Insurance Act amendment Bill, sponsored by Senator Ibikunle Amosun representing Ogun Central Senatorial district, scaled second reading in the Senate at Wednesday’s debate.
The Insurance Act, 2003 (amendment bill) which was first read on Tuesday, 24th November, 2020, seeks to set a minimum limit of compensation in event of loss suffered by the insured.
In his lead debate, the former governor of Ogun State argued that there have been casualties which were not the fault of the insured, but the victims were left without compensation, noting that the essence of amendment was meant to compel insurance companies in Nigeria to have minimal standard of compensation to victims.
“The general principles of a Bill for an Act to amend the Insurance Act, 2003, is to set a minimum limit of compensation in the event of death, injury or loss of property of third parties, with respect to insurance of public buildings and buildings under construction and for related matters, 2021,” he said.
The lawmaker expressed concern on incessant collapse of buildings in Nigeria, noting that the amendment would ensure compensation.
“The need for the amendment of this Bill was necessitated by the prevalence of collapsed buildings in many Nigerian cities which has led to unquantifiable loss of lives and property, as well as permanent disability.
“There has been an increase in the cases of collapsed buildings in the country, most especially in the last 10 years.
“These cases and several others too numerous to mention are considered as some of the worst incidences of collapsed buildings in Nigeria, in recent times. The need to checkmate these rising cases prompted the urgent need to amend the insurance Act,” he added.
Contributing, Senator Bala Ibn’Nallah faulted some provisions in the proposed amendment, saying they were at variance with the existing laws.
He, however, advised that the differences be sorted out at the public hearing in order to make the amended Insurance law effective.
“Where the proposal talked about compensation for public building collapse, I am not comfortable with it, because our responsibility is first to ensure that buildings don’t collapse and not to talk of compensation.
“I hope that aspect and others would be handled at the Committee level, Mr. President,” he noted.
Earlier, while citing several cases of building collapse across the country, Amosun advocated for serious penalties for those responsible for building collapse in the proposal.
After contributions by some Senators, Senate President, Dr. Ahmad Ibrahim Lawan referred it to the Senate Committee on Insurance, Banking and Financial Discipline. They are to revert back in four weeks time.
Insurance Act amendment scales second reading in Senate
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