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Kano Govt Targets Compulsory Insurance To Attract Foreign Investments

Kano State Government has unveiled plans to use the growing insurance culture to attract foreign investments into the state

The State Governor, Dr. Abudullahi Ganduje, who was represented  at a Three-Day retreat for members of the Technical Committee on implementation of Third Party Liability and other Insurances in Kano State by the Secretary to the State Government, Alhaji Usman Alhaji, unveiled the plans on Thursday in Abuja.

The governor told journalists that the Kano State Government was exploring and promoting insurance culture in the state to, among others, encourage Foreign Direct Investment (FDI), adding that “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.”

Ganduje explained that the compulsory insurance policy adopted by the  state government “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.”

According to him, the compulsory insurance policy is adopted by the state government in its quest “to make Kano a better state, develop economically and move to the next level”, stressing that the initiative will guarantee “the protection of the people of the state and their businesses, by ensuring they are insured and in the event of any eventuality, they can get relief”.

Similarly, Ganduje maintained that the policy would also “ensure that we raise our internally generated revenue, so that we can continue to deploy it into other sectors of development as well as help government fulfil its number one obligation which is protecting the life and property of our people.

“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”, the governor added.

In his remarks at the forum, the Commissioner for Insurance and Chief Executive Officer of National Insurance Commission (NAICOM) Mr. Sunday Thomas, said that the steps taken by the Kano State Government on insurance was a testament to the fact that insurance could thrive anywhere in the country.

He said that the objective of the retreat was to equip members of the committee with requisite information and knowledge to enable them maximize opportunities that would help grow and develop insurance culture amongst Kano state citizens.

According to him, the insurance policy will help the Kano state to “generate more revenue and serve as social protection mechanism that would assist both government and citizens in the event of any disaster”.

Thomas further projected that the mandatory insurances that would be enforced in the state would be “the third-party motto insurance covers in respect of all mechanically propelled vehicles that ply public roads.

“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 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 standard of living of the people and increase the state’s internally generated revenue”, the industry regulator added.

The NAICOM boss, however, pointed out that beyond the compulsory classes of insurance, the committee would be educated on the need to appreciate and exploit the benefits of insurance by encouraging individuals or corporate entities within the state to embrace other non-mandatory insurances.

He explained: “These are 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.

“This will enable an all-inclusive approach to the drive for insurance uptake that will address most of the sentiments against insurance in our society”, Thomas added.

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