The bill entitled The Insurance Act 2015 tabled in Parliament makes insurance compulsory for buildings above two storeys under construction and revised the capital requirements for insurance companies upwards to Le.480m.

Insurance Act 2015

“All buildings above two storeys under construction shall be insured against public liability,” Section 23(1) of the bill reads. “For the purpose of this section public liability means injury and death to members of the public; damage to neighbouring properties as a result of excavation and falling objects.”

The capital requirement to register as an insurer is Le.480m. This will enable the insurer to transact life insurance business. For each class of business other than life insurance that the insurer wishes to transact, Le.480m is required and ten times this amount specified …if it wishes to transact re-insurance business.

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The Minister of State Foday Manasaray, Ministry of Finance and Economic Development said in the well of Parliament that the statutory deposit for insurance companies in Nigeria is $15m, in Ghana $5m and in the Gambia $700,000.

He stressed that the penalties and fines that govern the insurance market are grossly inadequate and therefore the need for the 2015 Insurance Act. He stressed that adequate provisions were not made in the 2012 Act for reinsurance.

The statutory deposit in the bill is Le.300m compared to Le.100m stipulated in The Insurance Act 2012.