N2.54billion Debt: NASS loses insurance cover on assets

The National Assembly is losing its group insurance cover for owing Insurance Service Providers to the tune of N2.54 billion in terms of premium on vehicles, fixed asset and life policy, DAILY POST, reports.

The law requires insurance cover for assets, public officers and properties of government institutions, but the insurance policy covering the legislature as at today has been bankrolled due to huge debts.

Checks on some sections that deal with insurance policy of public institutions:

“Section 9(3) of Pension Reform Act, 2004 said, all employers (including the National Assembly) are required to maintain Group Life Insurance Policy in favour of Public Servants for a minimum of three times the total annual
emolument of the employee.

Moreso, “the National Insurance Act, 1997 makes it mandatory for all owners of Public buildings to insure against the hazards of collapse, fire, earthquake storm and flood. In addition, Section 68 of the Insurance Act also provides that no vehicle, inclusive of Government vehicles shall be used on a road unless a liability which may thereby incur in respect of damage to property of third parties is insured with a registered insurer.

Talking with DAILY POST on Wednesday for additional explanation, a Deputy Director in Finance and Accounts who argued not to be named revealed to News Agency that the development was unimaginable given the fact that it was mandatory to insure government properties against fire and different risks.

He clarified:

“Sadly, the National Assembly is presently owing Insurance Service Providers in terms of premium on vehicles, fixed assets and life policy.

“This implies ,that we no longer have insurance cover based on the policy of “no premium, no cover”.

Asked what was the sum total expected to be assured, he stated:

The details of the total insurance premium liability of the National Assembly till date stands at:

Senate Vehicles, 716,660,142.60

House of Representatives Vehicles, 430,357 ,518.63

Management Vehicles, 170, 964,052.50 Group Life Insurance Scheme (Staff) stands at 736,356,157.10

Totalling N2,054,337,870.83

Talking on the challenge of raising the insurance, he stated, there was need for adequate budgetary provisions.

This, he noted would cater for group life insurance

“In the light of the foregoing, it is requested that adequate budgetary provisions should be made to cater for group scheme for all Public Servants in the National Assembly as well as all insurable assets buildings, motor vehicles, machinery and equipment.

Meanwhile, the sum of N37 billion was appropriated in 2020 budget for the renovation of the ‘White House’ part of the building that accommodates the chambers of both Senate and the House of Representatives.