Abuja, Nigeria (CU)_ The frequent collapse of structures under construction in Nigeria underscores the importance of enforcing mandatory builders’ insurance. The latest collapse of a 21-story structure on Gerard Road Ikoyi Lagos, which resulted in the death of over 21 people and several injuries, highlights the necessity for the government to step up efforts to enforce obligatory builders and building- under-construction insurance in Nigeria.
This became important since, even after six days of the incident, neither a Nigerian insurance company nor a foreign insurer has acknowledged that it insured the structure. Additionally, media inquiries to insurance underwriting companies, insurance brokers, and agents to discover whose business insured the building found no results.
The problem has been exacerbated by the fact that the building’s owner and site managers, who are responsible to provide information on the fallen building’s insurance status, were claimed to be among the fatalities. This is true despite the fact that insurance of structures under construction is a mandatory insurance in Nigeria and one of the mandatory insurances targeted for enforcement by the Lagos State Government.
According to Section 65 of the Insurance Act 2003, the owner or occupier of any public building must be insured against responsibility for property loss or damage, as well as death or physical harm caused by collapse, fire, earthquake, storm, or flood. Under the Act, public buildings are defined as those to which the general public has access for educational, recreational, medical, or commercial reasons.
Non-compliance has a maximum penalty of N100,000 or one year in jail, or both. Additionally, Section 64 of the same Act requires any owner or contractor of a building under construction that is over two floors obtain insurance to cover liability for construction risks caused by his carelessness or the negligence of his workers, agents, or consultants, which may lead to death, physical injury, or property damage to construction workers or general public. According to reports, a large number of potential customers had subscribed for the crashed build at a rapid pace.
