Nigerian Insurance Act: Public Building Owners Face Fines, Jail Time for Non-Compliance

The Nigerian Insurance Reform Act has recently been approved, imposing fines and jail time on public building owners who fail to comply with the new regulations. The law mandates that public buildings must be insured against potential risks such as collapse, fire, earthquake, storm, and flood.

The National Insurance Commission will determine the dangers that buildings must be covered for. Additionally, the Act requires that Federal Government assets and employees be insured against any hazards or perils deemed appropriate by the Commission.

Owners of vehicles transporting gas or petroleum products must also have insurance coverage for potential losses due to unintentional explosions or fires. Violators of these regulations could face a minimum two-year prison sentence and a fine of at least N1 million.

The Act also sets new capital requirements for insurance companies, with life insurance companies needing a minimum capital of N10 billion, insurers needing at least N15 billion, and reinsurance companies needing a capital base of N35 billion.