The National Insurance Commission (NAICOM) and the Minister of Aviation and Aerospace Development, have unveiled the Revised Insurance Regulation on Leased Aircraft to boost airline operations.
The aim according to them is to slash airfares.
Speaking at the event in Abuja on Monday, the Commissioner for Insurance, Mr. Olusegun Omosehin, said the regulation would promote stability of the aviation insurance market.
Omosehin said the regulation had been designed in a way that the insurance market aligned both with the desire of government in terms of local content and the agenda of the liaisons and financiers.
According to him, the leasing of aviation aircraft will give the operators the needed advantage they require in terms of being able to procure new aircraft which will ultimately be to the advantage of Nigerians.
He said the regulation would positively impact the country’s Gross Domestic Product (GDP) and allow for capacity building locally where people benefit from the transfer of knowledge.
”This, we hope, will drop the cost of air travels in Nigeria because they can get more aircraft now with this agreement.
”We also believe that with the agreed insurance regulation, it will also give them (operators) some level of comfort in terms of securing this within a timeframe.
”With the right insurance framework, Nigeria’s aviation sector can overcome challenges, adapt to changes, and thrive in an ever-evolving landscape.
”The major concern of airline operators before now had always been their inability to meet the requirements of the liaisons to the financiers.
”There has been this requirement in the contract where the liaisons require about 95 per cent of insurances of this aircraft to be placed offshore.
”After a series of engagements and in line with our extant laws, we are able to agree a position that allows local operators who are taking aviation policy on a net account basis to be able to cede as much as 90 per cent to the international market.
”We have also stated the condition or the requirement for those capacities that are required,” he said.
Festus Keyamo, the minister, commended NAICOM for its efforts and collaboration toward making the regulation a reality.
Keyamo said the regulation would help the aviation industry to meet international best practices.
”What we have today is a complete Nigerian position that is also in tandem with what the world also expects.
”The official Working Group has looked at what they have done and have agreed with i
”They have shared it with most of the businesses across the world and we have a complete revised insurance regulations (3:29) on these aircraft in Nigeria,” Keyamo said.
Dr Adetayo John-Fisher, the Managing Director, First Standard Insurance Brokers Limited, said the revised regulation would give operators conducive atmosphere to bring in aircraft in the country.
John-Fisher, who spoke for the insurance industry, said the regulation would support the Federal Government’s intention to grow the economy.
Princess Zahrah Audu, the Director-General of the Presidential Enabling Business Environment Council (PEBEC), commended the collaboration between all stakeholders.
Audu called for better service delivery from airline operators.
The Executive Chairman of United Airlines, Prof. Obiora Okonkwo, who spoke on behalf of Airline Operators of Nigeria (AON), said that the implementation of the regulation should be seamless. (NAN)
