NAICOM, NSC Partner On Insurance Cover

The Nigeria Shippers Council, NSC, said it is in collaboration with the National Insurance Commission (NAICOM), to reduce the cost of doing business through the introduction of insurance cover on Containers regime and risk management at the various Ports.

Hassan Bello, NSC Executive Secretary, made the disclosure when the Council’s delegation paid a courtesy visit on the Management of NAICOM in Abuja.

He emphasised that insurance should be looked at in the area of policies involving goods on transit, accidents, loss, damages away from religious sentiments that everything happened for a reason which could be prevented.

He said that the Containers Deposit at the Ports is about N150,000 to N200,000 on each containers which runs into billions making supply costly, as most of the containers could not be returned within the expected date due to the nature of the roads.

“As our functions as Ports regulator, we have our eyes on the cost of doing business in Nigeria. So, in the ease of doing business and the cost of doing business, we want to make our Ports competitive, so we have to moderate the cost. One of the cost is Insurance deposits that Shippers pay for taking the containers out of the Port.

“The containers are the assets of the shipping companies, they must be returned in perfect condition and so they don’t get that because as at the time the containers are not returned, the deposit is not refunded, when you returned the containers in good time , you collect your deposit back.

“However, that is not as simple as that, access to the port maybe difficult and if a container is not returned within a certain time limit, they could be a problem, one loses his deposit or part of the deposit and so the shippers have to forgo the deposit.

“Sometimes the shipping company even when the containers are returned they don’t pay the deposit in good time and that is money lost, so what we are saying is there are a lot of issues like that, that we could have the insurance company come to take care of,” he noted.

He further said that the insurance company could come in, to make sure the containers are covered at a lesser cost, to reduce some of the challenges faced by the Shippers.

“We want policy on the participation of insurance in container regime, there is policy on goods in transit of course, we want the policies to cover most of the risk that Shippers, freight forwarders incur including demurrage, rent.

“If this could be covered that will make shipping extremely cheaper and also Door-to-Door delivery of cargoes, which will be covered by insurance,” he said.

Bello, however, said that inspite of the pandemic the Council was working with all other maritime agencies to look into digitalisation of Ports to limit the access of physical contact.

He also said that the Kano State government had voted about N2 billion for the structures around Zawachiki Inland Dry Port which has been concession to Dala Dry Port Nigeria limited.

Responding, Commissioner for Insurance and Chief Executive Officer of NAICOM, Olorundare Thomas, said he has being looking forward to the collaboration between the two organisations on how to make insurance significant in the marine sector.

He commended the NSC for bringing up creative and developmental ideas that would deepen the market of the commission in the maritime industry.

“As far as I can remember this will mark one of the few times that any of our stakeholders will come with developmental ideas that will enhance the thought of the commission on how to deepen the market and how to make insurance relevant to our daily living.

“When it comes to trading marine on its own is in the frontline and insurance itself move with trading, insurance started with marine insurance largely before fire, but marine is quite critical in the history of insurance development.

“With what we have gone through in the country and globally, we need to take insurance more seriously than ever, than what we have done in the past, I have listened to you and I have taken note, this are things we must collaborate and work together as agencies of government.

“It is important for us that marine insurance today, what we are getting from marine business is not consistent with transaction in the marine sector,  in terms of contribution to insurance penetration is almost insignificant but as an economy, we know that is not the true reflection of what is happening in the Marine Sector and I am happy for your creative ideas,” he said.