There are strong evidence that the 21-story building that collapsed recently in Ikoyi, Lagos, had no insurance coverage.
As of yesterday, the Nigerian Insurers Association (NIA) and the Nigerian Council of Registered Insurance Brokers (NCRIB) were still searching for the building’s likely insurer.
The NIA represents around 58 insurance and reinsurance companies, whereas the NCRIB represents more than 500 insurance brokers.
Despite the fact that construction insurance is essential for permits and paperwork, contractors are said to consider it as a waste of money.
According to industry sources, the cost of All-Risks Construction Liability Insurance is roughly 1% of the total cost of construction.
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.