Stakeholders restate need for effective building insurance

In reaction to the collapse of the 21-storey building in Ikoyi, stakeholders in the insurance industry have condemned the rising spate of building collapse in the country and are canvassing for building insurance to be made compulsory to cushion the effect of such incidents for victims and their families.

While the death toll from the building exceeds 40, officials of the National Emergency Management Agency of Nigeria have said that the chances that survivors trapped in the building would still be alive are slim.

As of the time of filing this report, no insurance cover for the collapsed building has been found.

Yetunde Ilori, Director-General, Nigerian Insurers Association, NIA commiserated with the families of the victims while also lamenting the worrisome reoccurrence of building collapse in the country.

She stressed the need for the general public to comply with all building rules as well as adopt insurance in the protection of lives and property to curb any further incidence of building collapse.

In a similar vein, Rotimi Edu, President of the Nigerian Council of Registered Insurance Brokers, said the alarming cases of building collapse constituted a huge challenge to the government and other stakeholders in the built environment. He canvassed for the need to come up with better synergy to ensure compliance with extant building regulations.

Sunday Thomas, the Commissioner for Insurance, National Insurance Commission, described the building collapse as a national tragedy and stressed the need for governments at all levels to sensitise the people to buy into compulsory insurances especially insurance of public buildings and buildings under construction.

He said, “Insurance is about risk-taking and claims payment when the unforeseen happens. If the building was insured, the insurance company in charge would pay and NAICOM as a regulator would ensure that claims were paid.

Ganiyu Musa, NIA, Chairman said with no one coming forward to notify them of any form of insurance compensation, the underwriter has embarked on the inquiry after waiting for days.

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“So far, we have not heard confirmation from any of our members that they have provided cover. We have written, and from the responses, we are getting so far, we have not heard any information from any of our members that they indeed provided cover for the building.

“If they had been complied with, then clearly, there is no doubt that members will pay. But like I said, it is something that will be fully examined. If at all there was a cover, we then need to examine all the conditions of the contract and then ensure that the conditions have been fully met.”

While the recent collapse of the 21-storey building under construction at Ikoyi, Lagos, depicts a huge tragedy and a sad commentary on national life, this case overshadowed the case of a 2-storey building that failed on the same day in the Lekki area of the state.

According to the Nigerian Institute of Building (NIOB), no fewer than 43 buildings under construction collapsed in Nigeria in 2019 and many lives were lost in the incidents. The National President of NIOB, Kunle Awobodu, said that 17 of the cases were recorded in Lagos alone. The rest occurred in other parts of the country.