Nigerian Airlines Struggle To Pay Insurance Premium –NAICOM

According to Leo Akah, Director of Policy and Regulations on the Nigerian Insurance Commission, Nigerian airline operators are having a really troublesome time paying the premium on their property, together with airplanes and different objects.

He mentioned that each one insurance suppliers had been dividing the premium into smaller quantities, with some selecting to do it on a month-to-month, others on a quarterly, and others in components.

Speaking outdoors of a two-day symposium on aviation, freight, and export in Lagos, Akah made this revelation. According to the NAICOM head, insurance charges are often elevated after a airplane crashes.

He famous that although aviation dangers had been low, they had been excessive in severity and required strict authorized frameworks and regulatory ideas within the insurance sector.

He mentioned, “Our law says no premium no cover and if you don’t pay, you are on your own. You can’t fly if you don’t have insurance. This is an issue. Even accessing foreign exchange to pay your insurance overseas is among the challenges in the sector. The insurance company won’t collect naira from you.

“It is not optional for you not to have insurance as an airline operator. If you don’t insure your liabilities, for example, you cannot fly. We liaise with the Nigerian Civil Aviation Authority to ensure that whatever paper is submitted to them at NCAA is evidence that you have insurance so that they can allow you to fly.”

The enormous insurance premium within the aviation sector is impacting the price of operations of airways, that are transferred to shoppers.

However, regardless of Nigeria’s low air crashes, insurance companies, particularly these primarily based abroad, cost the nation’s airline operators excessive insurance premiums, a scenario which has been attributed to the unhealthy score of the continent’s airways when it comes to security.