NPA HAS NO INSURANCE COVER
Issues Public Notice 4133: Prequalification for Provision of Insurance Cover for Nigerian Ports Authority-National Shopping List
*“All assets of the Authority are comprehensively insured and insurers are currently undergoing an assessment of the damages,” -Hadiza Bala Usman
*“We have a comprehensive insurance policy on the building this policy, among other things covers fire and theft. The insurance companies are also part of those on ground taking the stock”-Adams Jatto
*“If you insure your property and once there is a claim and evidence to back it, the insurance companies will take over the payment. Depending on the sum insured, an insurance firm can ascertain the value of the damage and restore it back to the same value where it was before the destruction occurred. If for example, NPA insured for N500 million and the damage is N500 million, automatically, the insurance company will take over”-Ndubuisi Onunwa,
*“There are classes of insurance but if the losses suffered by the NPA in the incident are covered, then the insurer takes full responsibility for paying compensation of the losses suffered. That is the essence of insurance. Going again to take money from government is double charge. I don’t want to call it fraud”-Lucky Amiwero
Contrary to claims by the Managing Director of the Nigerian Ports Authority, NPA Ms. Hadiza Bala Usman, finding have revealed that the Agency has no Insurance Policy for its staff, equipment, fire, theft nor damage to its facilities.
This explains the haste to welcome donors and sympathizers who are fawning and scrambling to donate one item or the other to NPA following the fire incident on its head office in Lagos during the recent Endsars protest.
Addressing newsmen two weeks after the incident, Hadiza said “The Nigerian Ports Authority (NPA) may not be able to replace some of the materials lost when hoodlums attacked its headquarters building on Wednesday, October 21, 2020 due to inadequate finances as its allocation has been slashed, while it now operates a Covid budget which is limited in scope”.
Even those who specialize in insurance matters are confused on what comprehensive insurance means as it concerns NPA.
Again we ask, is the MD preempting something? Maritime stakeholders noted that her statement on insurance is weighty and pregnant.
If NPA has an insurance policy, why the hide and seek game and refusal by NPA to disclose name (s) of the insurance company/companies and the sum insured?
Has NPA defaulted in payment of its Insurance Premium?
Is NPA a private or public firm?
Speaking with an industry publication, Ships&Ports, Mr. Ndubuisi Onunwa, an insurance consultant said “If you insure your property and once there is a claim and evidence to back it, the insurance companies will take over the payment. Depending on the sum insured, an insurance firm can ascertain the value of the damage and restore it back to the same value where it was before the destruction occurred. If for example, NPA insured for N500 million and the damage is N500 million, automatically, the insurance company will take over.
“It is a huge loss to the insurance industry but that is why insurance is in the business of covering losses. If nothing has happened, of course they will make profit but now that a loss has occurred, it is a primary responsibility to compensate the owners of the property.
“That is why we advise people to always take up insurance policy on their assets because it is something that can happen unexpectedly and once it happens, automatically, the owner has a fallback position.
“The real insurance companies are not shaking because they have also reinvested the premium. An insurance firm also does not bear the risk alone, they spread the risk with other insurance companies or a re-insurance company so that when a loss like this occurs, they will fall back on those companies, like a consortium of insurance companies to pay the compensation,” Mr. Onunwa emphasized.
Public Notice 4133: Prequalification for Provision of Insurance Cover for Nigerian Ports Authority-National Shopping List
Curiously, NPA has issued a Public Notice 4133 inviting insurance firms to Tender to provide insurance services for NPA from the end of this year to the next.
Public Notice 4133, coming after the fire incident is fueling speculations that NPA has no valid insurance policy prior to the fire incident at it corporate head office, Lagos.
In a swift response to our enquires on Public Notice 4133, Engr Jatto said, “Please read properly the introduction on the advert. We carry out National shopping list for insurance companies every two years through public advert in line with public procurement act. So the current ones engaged two years ago have an expiring date at the end of the year 2020 that was why we started the procurement process in earnest for a new national shopping list to be engaged effective 1st January 2021 to 31st December 2022”.
Our request for the names of the names of Insurance companies engaged by NPA for years 2019 and 2020 got no response.
Maritime stakeholders are confused on the type of insurance cover does NPA has.
As members of the National Assembly, Terminal Operators and others fall over each other to make donations to NPA to recover from the fire incident, the question that remain unanswered is: What is Insurance and why should citizens and companies take insurance policies?
When the Honorable minister of transport, Mr. Rotimi Amaechi visited the NPA burnt headquarters recently, the conversation between him and journalists went like this:
Journalist: Sir, why did it take you over a month to visit the burnt scene?
Amaechi: What is the difference between then and now?
Journalist: 1 month two days
Amaechi: It makes no difference or I should come and cry.
Journalist But sir bn an organization under your ministry, don’t you think you ought to have come earlier than now?
Amaechi You mean I should have rush down here, to come and do what, to come and cry?
Hadiza ( cuts in) I actually sent the briefs to him two days after the incident
Amaechi: I am yet to read it.