New Telegraph

Building insurance: Bill stipulates N5m fine for defaulters

As lawmakers go through the nation’s insurance bill, indication has emerged that developers and property owners, who fail to take insurance cover for workers and occupiers, will pay a minimum of N5 million fine.


According to the bill, a person who fails to comply with compulsory insurance of public buildings and buildings under construction would be liable on conviction to a fine of N5 million or imprisonment to a maximum term of 12 months or both. The Insurance Industry Consolidated Bill, currently before the National Assembly, has scaled second reading.


The Insurance Act (Amendment) Bill, 2021, was sponsored by Senator Amosun, Ibikunle Oyelaja (Ogun Central).


The bill, when passed by the National Assembly and assented to by President Muhammadu Buhari, will, among others, make it mandatory for victims of building collapse to be compensated by insurance companies.


Leading debate on the bill, Amosun said: “The need for the amendment of this bill was necessitated by the prevalence of collapsed buildings in many Nigerian cities, which has led to the unquantifiable loss of lives and property as well as permanent disability. “There has been an increase in the cases of collapsed buildings in the country, most especially in the last 10 years.”

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