The National Insurance Commission has called for compliance with the provision of the Insurance Act, 2003, which makes it compulsory for all buildings used by third-party occupiers to be insured against the risks of collapse, fire, earthquake, storm and flood.
A statement from NAICOM on Friday said in the event of any mishap, adequate compensation would be paid to both victims and families of those who lost their lives as a result of occupying such buildings.
“Members of the public are hereby reminded that non-compliance with this provision of the law attracts a penalty of N100,000 or one year imprisonment or both,” it said.
The commission urged all state governments to start the process of enacting legislation to ensure that all buildings used by third-party occupiers were adequately insured so as to give relief to victims of collapsed buildings whenever they occured.
NAICOM stated that it deeply sympathised with victims and family members of those who dieds in the recent collapsed buildings in Lagos and Kaduna states.
It noted that in Lagos alone, over 20 lives had been lost to building collapse in the last six months.
It said, “Most painful is the fact that majority of those injured have to bear the treatment costs themselves, while the families of those that lost their breadwinners have no form of compensation, except maybe, the little that the state government could provide from the scarce resources of the state.
“The commission is sad about this avoidable burden on the government and victims if only these buildings are adequately insured.”