By Sade Williams
Amid debates over why Nigeria airlines have to insure their aircraft with Nigerian insurance firms, Olusegun Omosehin, Commissioner, National Insurance Commission (NAICOM), has said that the domiciliary of the aircraft and other assets is a major reason operators have to insure their assets locally.
Omosehin, who spoke at the 4th CHINET Aviacargo Conference in Lagos said, ‘Where the aircraft operates is a factor, where are you taking the aircraft to, where is it going to operate, we have to collaborate with the regulatory authority to ensure this happens. It is not an imposition as the operators are say but a law.’
In Nigeria, the policy stipulates that airlines must insure through local insurance companies to meet the requirement of local content.
Omosehin, who spoke on the role of insurance in aviation sector, noted that the risks are shared with international insurers, especially, Lloyds of London.
“The reality of aviation insurance is a global business risk emanating from one country cris crossing borders. Many of them often end up in Lyolds of London and this is not peculiar to Nigeria. Other countries, even risks emanating from the United States will end up in Lyolds because they have a great appetite for aviation risks and that is why they are re-insurance.”, he said.
The NAICOM boss said however attributed the major issue with insurance in Nigeria even globally, with international politics and the dictates of financiers who owns the capital.
“ I don’t see why we consider this as an issue but I think that there is a major issue around the demand of financiers that oftentimes are financing aircraft for the majority of our operators because they are the owners of capital, they then want to dictate where the insurance should be done. In this instance, these risks which are the aircraft are going to be flown in Nigeria, carrying Nigerian passengers operating Nigerian routes.”, he added.
He however said that Nigerian insurance companies have the capacity to handle aviation related insurance, including aircraft insurance, against insinuations in some quarters.
