Following the increasing reports of building collapse in Nigeria, the Senate President has called on a review of the sections of the Insurance Act 2004 that focus on building insurance to ensure stiffer punishment.

Section 64 of the Insurance Act 2004 provides for insurance of buildings under construction. Section 64 (3) also provides the penalty for failure to insure any building beyond two floors, with a fine of N250, 000.00 or imprisonment for three years or both.

Speaking at the two-day National Insurance Conference 2023 in Abuja, the Senate President, Godswill Akpabio, who was represented by Darlington Nwokocha, the Minority Whip of The Nigerian Senate, noted that statistics showed that about 553 buildings have collapsed in the last 49 years in Nigeria.

He added that the “The fine of N250, 000 for buildings of more than two floors is not adequate enough.” The Senate president in his written speech stressed the need to review the Act for stiffer punishment against any defaulters when it comes to insuring buildings.

He added, “Whenever a building collapsed, it does not just result in loss of the building but loss of lives, livelihood and infrastructure that would not be replaced without insurance solutions.”

The Senate President, therefore, reiterated the need to ensure further actions and review the insurance laws while commending NAICOM for setting the pace towards addressing building collapse and ensuring insurance compliance.

The Speaker of the House of Representatives, Dr Tajudeen Abass, also decried losses due to building collapse in the country.

Abass, represented by the Chairman, House Committee on Insurance and Actuarial Matters, Ahmed Jaha, said the conference should ensure there is succour for victims of building collapse.

He expressed the commitment of the National Assembly to collaborate with the insurance regulator to ensure the protection of lives and properties in the country.

The chairman of Heirs Holdings, Tony Elumelu, proposed a N50bn capital base for consolidated insurance companies operating in Nigeria, with general business at N30bn and life businesses at N20bn.

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