By Samson Echenim
Consolidated Hallmark Insurance Plc earned a gross premium of N17 billion from Nigeria’s weak aviation industry in 2015, indicating a capacity for a huge insurance market if the aviation industry is well energised.
Consolidated Hallmark Insurance is market leader in aviation insurance in Nigeria with 12 aviation insurance policies and co-insuring another 36 policies, while NICON follows.
Managing director of the company, Mr Eddy Efekoha, who gave the figures during a presentation titled “Regulation and Aviation Insurance,” yesterday at Aviation Round Table (ART) breakfast meeting in Lagos, said that complying with the rules including timely payment of premiums would ease indemnity, should there be risk.
Representatives of the two leading aviation underwriters, Consolidated Hallmark and NICON at the forum solicited for improved synergy between the insurance and aviation sectors noting that getting the system right would provide a win-win partnership for insurers and airline operators.
Efekoha said that the numerous plane crashes in the past, business interruption and supply chain risk exposure necessitated the need for regulation as well as aviation insurance in the industry.
He listed policies for the sector to include aircraft hull, passengers, aviation third party as well as excess liability. Also included are aircraft hull war, aviation refuelling; hanger keepers’ liability and airport operator liability.
“In accordance with the Civil Aviation Act 2006, every airline operator, providing air transport services for hire and reward, must have adequate insurance for passengers/cargo and third party. The insurance must be sufficient to pay compensation of $100,000 per passenger in case of death or injury, Efekoha said.
Also presenting a similar paper, the managing director of NICON Insurance, represented by Vincent Okomayin stated that the primary responsibility of both local and international regulation is to ensure safety of life and property of passengers/ third party, saying that the role of airline operators in aviation insurance is to provide adequate and reliable insurance cover.
He said that NICON which started aviation insurance in Nigeria and was the sole indigenous insurer of the now defunct national carrier, Nigeria Airways for a couple of years, brought to bear a wealth of experience in aviation insurance.
According to him, for smooth synergy airlines are supposed to provide relevant information about the subject matter of insurance from insurance, request adequate cover as well as ensure timely payment of premium as at when due to forestall a situation where the insurance industry would have to pay claims despite delay in premium payment.