Compulsory Insurance in Nigeria
There are many different types of insurance available in Nigeria but not all of them are compulsory insurance. Compulsory insurances are those required by the law to providing protection to third parties and the general public.
Non-compulsory insurance include:
- Education insurance
- Household items
- Life insurance
Currently there 6 types of compulsory insurance in Nigeria, which are:
- Builders Liability (under the Insurance Act 2003/under the Lagos State Building Control Law 2010) - all owners or contractors of buildings under construction (more than 2 floors), must purchase to provide compensation in event of bodily injury, death and property damage to workers at construction sites and affected members of the public following collapse of the building and other construction risks.
- Occupiers Liability (under the Insurance Act 2003 and Lagos State Law) - all owners or occupiers of public buildings, whether private or public, are required to provide under the National Insurance Act 2003 and the Lagos State Building Control Law 2010. Occupiers Liability Insurance provides compensation in events of bodily injury, death and property damage to the business users and members of the public in case of building collapse, fire, earthquakes, storm or flood.
- Employers Liability (Group Life – under the Pension Reform Act 2004) - all employers of labour with more than 4 employees are required to have under the Pension Reform Act 2004. Provide for compensation in the event of death, disappearance, disability, or critical illness suffered by staff while in service and to subsidize pension provision in the event of mental or physical disability.
- Employers Liability (under the Workmen’s Compensation Act 1987) - provide compensation for workers that suffer from injury, contract diseases or die in the course of employment. Employees (and their families) have the right to demand compensation and payment of medical expenses from their employers if they had injury, sickness or fatality while they were working for the employer.
- Healthcare Professional Indemnity (under the NHIS Act 1999) - all medical professionals, institutions and centres are required to have under NHIS act 1999 section 45. It provides compensation for the NHIS patients who suffer Death, Sickness, Permanent Disability, Partial Disability and Injury by shock from mistakes, errors, negligence and acts of commission or omission of medical practitioners and institutions.
- Motor 3rd Party Liability (under the Insurance Act 2003) - all owners of Motor vehicle whether private or commercial vehicle are required to provide under the National Insurance act 2003 section 68. Motor vehicle 3rd party liability provides compensation in the event of death, bodily injury, and property damage to members of the public.