There are significant indications that the 21-story building in Ikoyi, Lagos, that collapsed recently had no insurance coverage.
The Nigerian Insurers Association (NIA) and the Nigerian Council of Registered Insurance Brokers (NCRIB) were still looking for the building’s probable insurer as of yesterday.
The NIA represents about 58 insurance and reinsurance firms, whereas the NCRIB represents over 500 insurance brokers.
Although construction insurance is required for permission and paperwork, insiders say contractors disregard it as a waste of money.
According to industry sources, the price for All-Risks Construction Liability Insurance coverage is about 1 per cent of the whole construction project, meaning that the building owner would have had to pay around N500 million or less.
The premium would cover repairs of the collapsed structure and compensate involved parties, including victims’ relatives.
Without insurance, the Lagos State government is forced to pay the victims’ families out of its own pocket, which should not have been the case.
“As of today, no insurer has notified the association of its involvement in the provision of insurance to the building,” said NIA Chairman Ganiyu Musa in response to this news yesterday.
He said that since the organisation set up an inquiry process last week to see whether members underwrote the building, no member firm has come forward to say they did.
Similarly, the NCRIB executive secretary, Tope Adaramola, said no broker has yet alerted the council of their participation in the construction project.