Stakeholders compliance level on Insurance of buildings under construction in Abuja-Nigeria

Abstract

Compulsory insurance of buildings under construction revolve around poor compliance structure, ineffective implementation strategy by the insurance regulator and lack of awareness on the part of the Nigerian public. To this extent, the compliance level of the stakeholders with the insurance of building under construction was evaluated in relation to Insurance Act number 37 of 2003 using mixed methods to elicit data. Structured questionnaires were self-administered on 95 randomly selected construction firms and 10 purposively sampled insurance companies. In addition to this, interview was conducted with an official of National Insurance Commission (NAICOM) and proforma document was prepared to obtain historical data from both the insurance companies and NAICOM. Findings indicated that low enforcement level of the Act by NAICOM with a mean score of 4.46 was ranked 1^st; improper collaboration with the stakeholders involved in compliance was ranked 2^nd with a mean score of 4.22 and poor or ineffective compliance structure was ranked 3^rd with a mean score of 3.99. The compliance of the notable section in Insurance Act of 2003 with regards to insurance of property had not been satisfactory due to low enforcement of the punitive measures for non-compliance. Offenders should be punished to serve as deterrent to others who may want to flout the Act.

Keywords: Abuja-Nigeria; Compliance level; Insurance Act; Insurance premium; Property