Wednesday, February 05, 2020 / 05:00PM /By Ekerete Ola Gam-Ikon / Header Image Credit: Vanguard News
If you have been shocked, surprised, saddened and even
angered by the fire incidents in our markets across the country, you are just
human, and that is understandable. However, risk managers, safety
professionals, insurance underwriters, environmental experts and business
thinkers are "sympathetically upset" that their warnings continue to
be ignored, disregarded and discounted by stakeholders in the markets namely
shop renters, shop lessors, shop owners and owners of the buildings as well as
government agencies.
Naturally, I join all well-meaning Nigerians to
console those who have lost loved ones, their life savings and investments and
face an uncertain future. Yet, knowing from experience that most insurance
policyholders today were victims of past losses and damages, it becomes
necessary to share these few thoughts on the appropriate simplified recovery
plan.
Working with the Governments
Remedial actions of governments across the country
after the fire incidents to give relief to victims and their families are
commendable. However, the larger issues have to do
with those strategic actions that governments need to take to avert the next
fire incident or make the process of recovery less painful and burdensome to those concerned.
As primary actors in these markets, the governments, both in terms of their
responsibility to citizens and revenue, need to do the following:
1. Conduct an assessment of ALL markets (the affected
markets and those not affected) with risk management experts to determine the
basis for an appropriate fire management plan;
2. Involve the Federal Fire Service in the process of
assessment and ensure fire fighting equipment, like fire detectors and fire
extinguishers, are installed, with
designated persons trained to use and maintain them before the next fire
outbreak;
3. Enforce compliance with relevant laws regarding
such facilities (markets, schools, hotels and hospitals) in line with Fire
Service Act 2004 and Insurance Act 2003, which requires public buildings to
undergo assessment and obtain Fire Certificate and Insurance against public
liabilities respectively;
4. Create enlightenment programmes that will
constantly inform and alert users of the markets about the need to be cautious
while looking out for machines that are dysfunctional and might cause a fire.
The role of Insurance Companies
As the ugly experiences of these fire incidents in our
markets have occurred, many of us have questioned the role of insurers
concerning enlightening the traders (shop renters, shop owners) and managers of
the markets.
Indeed, insurers should engage
in regular enlightenment campaigns in and around the markets in response to the recent experiences in markets across the country.
However, the truth that we must all hear is that our
markets do not meet the standard assessment indices to qualify for insurance
cover against fire!
Like Fire Service, insurers would
want to see that facilities used as markets
have basic fire prevention and fire fighting equipment. Do our markets today
have them? Certainly not.
The absence of fire fighting equipment
explains why it would
be difficult for professionally-run
and brand-conscious insurers to consider providing insurance cover against fire
and other perils for our markets.
A visit to any of our markets or plazas across the
country reveals the risks, or rather threats, under
which citizens live.
To think that the cost of Fire Insurance is minimal relative to those of vehicles, life and credit yet stakeholders in the markets are uninterested, says a lot about the character of socio-economic value.
Living After The Fire
Survivors of fire incidents in our markets can move on
with their lives because of the level of TRUST they enjoy with their
colleagues. Usually, they recall that when it happened to Mrs. A, every trader
in our product line contributed towards our comeback.
Quite often, the affected traders receive goods in
credit, share spaces and get loans from their market associations and have come
to TRUST this system over the years.
Even when the owners and managers of the markets meet
the standards required by insurers and go ahead to obtain insurance cover, they
would most likely be afraid of delays and denials (non-payment) of claims by
insurers.
Until proper standardization of the markets has been
put in place for credible insurers to provide appropriate insurance cover and
pay claims when due, be sure that traders will continue to see their support
system as most reliable.
Let us reset our commitment to improved standards of
living by engaging relevant stakeholders NOW!
Who will do it? I strongly suggest the insurance
industry as their overall contribution to the national discourse on fire.
Waiting for the shop renters and shoppers to be ready
will not do it.
About The
Author
Ekerete
Olawoye Gam-Ikon, MNIM, CPP, is a management consultant with a
specialization in Strategy and Insurance. He is available through e-mail olagamola@gmail.com
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