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…We’ll engage stakeholders in it – NAICOM
By Chinelo Obogo
The Chief Executive Officer of Overland Airways, Capt. Edward Boyo has attributed the Federal Airports Authority of Nigeria’s (FAAN) failure to insure airports across the country for the financial losses suffered by airlines.
Speaking at the 5th CHINET Aviacargo Conference in Lagos with the theme, “The Emerging Synergy Between Aviation and Insurance Industry,” Boyo urged the National Insurance Commission (NAICOM) work towards ensuring that all airports in Nigeria are properly insured, because according to him, the dilapidated condition of many airports has caused much damage to aircraft and airlines are left to bear the losses.
He also said it is concerning that the focus on aviation insurance has been on airlines, passengers, and luggage, while the major cause of accidents, which are the airports has been overlooked. He gave instances of bad runways, unkempt operational areas and inability to control wildlife which causes bird strikes.
He called on the federal government to ensure it meets its own responsibilities by enforcing compulsory insurance coverage for all airports.
He said: “We are talking about insuring airlines, passengers, luggage and all but what is the insurance regulator doing about the principal causative factor? The inadequacy of their wildlife control, the inadequacy of their runway and so many other things. They are not insured. It is like I am driving a car on the road, I have insurance and you are allowed to drive a car on the road without insurance.”
Responding to his concerns, NAICOM Commissioner, Olusegun Omosehin who was represented by the Deputy Commissioner (Technical), Usman Jankara, said the Commission is ready to commence discussions on the compulsory insurance of Nigerian airports, saying that the new reforms gives the regulator the necessary authority to enforce such mandates.
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He said the reason for compulsory insurance is to protect public interest and ensure that no one is left without financial compensation in the event of harm.
He explained that while regulations have been in place, the Commission historically lacked the direct authority to enforce them, a situation that has now been rectified.
“As regulators, we work within the ambit of the law. The president has now imposed a reform to enforce composite insurance. Before now, those regulations were in place, but the authority to enforce wasn’t there,” he said.
The Managing Director of PeakThrust Insurance Brokers, Bimbo Onakomaiya, said there are about 370 registered aircraft in Nigeria, out of which 147 are with the Nigerian Air Force and about 170 domestic aircraft for business and pleasure.
She said that there are about 31 airports, about 92 airstreams and 13 scheduled commercial aircraft operators in Nigeria and growing, adding that there is no way Nigeria would have such a high number of fleet without having a very strong insurance backing for these aircraft.
“And so there is a need to work hand-in-gloves with NAICOM. A better part of synergy is what we can expect. We cannot expect synergy if both of those industries are not strong. Because when we have synergy of different areas of both industries, we would have better results,” she said.
