News
N2.54bn 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, our correspondent, 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.
Speaking with newsmen yesterday for further clarification, a Deputy Director in Finance and Accounts who pleaded not to be named told newmen that the development was unimaginable given the fact that it was mandatory to insure government properties against fire and other hazards.
He explained:
“Unfortunately, the National Assembly is presently owing Insurance Service Providers in terms of premium on vehicles, fixed assets and life policy.
“This means , 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 said:
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.
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